Personal Finance and Budgeting Post-Test Exam Questions and Answers, Exams of Finance

Download Personal Finance and Budgeting Post-Test Exam Questions and Answers and more Exams Finance in PDF only on Docsity! Post-test Exam Questions And Answers What is the best way to create a budget? - correct answer Divide your income into categories and plan how much you'll spend on each. How does a debit card work? - correct answer It lets you pay with the money in your checking account. Which of the following is true about credit cards? - correct answer If you don't pay your balance off in full each month, you'll accrue interest. Someone broke into your apartment and stole all of your stuff. Luckily, you have renter's insurance. How do you request that your insurance pay for the lost items? - correct answer File a claim. What is the name of the document that comes with your paycheck and shows you what you were paid and how much was taken for taxes? - correct answer Paystub When moving to a new rental, you'll likely need to pay a security deposit. How much is this often? - correct answer First and last month's rent. Post-test Exam Questions And Answers You got $200 from your grandma for your birthday. What should you do first? - correct answer Record it as income in your budget. What is the name of the document that tells you what you need to pay on your credit card? - correct answer Statement What happens if you go into debt? - correct answer You'll need to pay back a minimum amount every month. You'll likely pay more than you borrowed due to interest. Your net worth will be negatively affected. You charged $500 to your credit card to buy a new TV and paid it off after 6 months. With interest, you paid back a total of $600. Which of the following is the principal in this situation? - correct answer $500 If you decide to rent a place to live, you'll need to sign a . - correct answer Lease If you pay off only the amount owed on your credit card each month, but don't pay it off completely, what's that Post-test Exam Questions And Answers What is double-entry accounting? - correct answer A budgeting method where you record your earnings twice: once to track where your money is going, and once to decide what it is for. You decide to stop at the ATM and get money out of your account before going to the store. You're a making a(n): - correct answer Withdrawal Why should you stay away from borrowing up to your credit limit? - correct answer Because it reflects poorly on your credit score. You find evidence that your identity has been stolen. Who should you contact first? - correct answer The Federal Trade Commission. Which of the following deductions are you most likely to see on your pay stub? - correct answer Social Security deduction. What is the main purpose of the dual accounting method? - correct answer To record every transaction twice, reflecting them in accounts and in your budget. Post-test Exam Questions And Answers If you wanted to know what factors contributed to your credit score, how could you find out? - correct answer Check your credit report. What's a "hard inquiry"? - correct answer When a financial institution requests information about your credit history for the purpose of extending more credit. Which of the following factors will show up on your credit report? - correct answer How many open accounts you have. Your debt-to-income ratio. Your payment history. What is a debt-to-income ratio? - correct answer The ratio of your debt compared to your annual income. Something that lenders look at on your credit report. A percentage that helps lenders decide your ability to pay back a loan. You hit a deer while driving. The deer is fine but your car isn't. What kind of insurance must you have in order for the damage to be covered? - correct answer Comprehensive Post-test Exam Questions And Answers What percentage of a home price is typically required for your down payment if you want to avoid purchasing private mortgage insurance (PMI)? - correct answer 20 percent Which of these is not identity theft? - correct answer A scammer poses as a representative from a charity and asks for money. Why would you want to claim an exemption on your pay stub? - correct answer It will lower the amount of taxable income you have. You bought $230 in clothes and charged it to your credit card. What happens if you don't pay the balance off by the end of the month? - correct answer You'll start to accrue interest on your credit card balance. You don't have dependents. Do you still need life insurance? - correct answer Yes; it can pay for medical and funeral costs.