6. Imagine that you have gotten you first full-time job. You are now living on your own and managing your money. Since it is your first job, what you are making covers your expenses and leaves you with a little disposable income. What is the BEST next step to help you manage and track your spending?
A. Hire a personal CPA.
B. Invest in a variety of stock options
C. Set up a personal checking account.
D. Sign-up for several different credit cards.
7. Which statement BEST explains the purpose of credit?
A. To score the finance of citizens
B. To borrow money for a purchase
C. To enable people to live beyond their means
D. To create a cycle of debt that is difficult to undo
8. In previous eras, it was almost impossible for women and minorities in the United States to get loans from banks and other financial institutions. Which of these was created to help eliminate this discrimination?
A. Internal Revenue Service (IRS)
B. Fair Credit Reporting Act (FCA)
C. Factual Credit Reward Act (FCRA)
D. Equal Credit Opportunity Act (ECOA)
9. When it comes to credit, there are some excellent offers out there. There are also ways of borrowing money that are going to cost you a lot in the long run. There are laws to protect consumers from the most exploitative options. Why is it important for anyone seeking credit to understand these laws?
A. So they will know their rights as consumers.
B. So they begin lending money to other people.
C. So they can start thinking about the things they will purchase.
D. So they can start teaching others about their consumer rights.
10. Cammie works at the local grocery store and regularly spends some of the money she makes buying groceries there. Which term best describes Cammie?
A. Producer
B. Consumer
C. Estate Planner
D. Financial Analyst
11. Liza knows that she needs to keep debt to a minimum if she wants a stable financial future. What is the BEST way to avoid debt?
A. Try not to borrow money.
B. Spend as much as possible.
C. Pay attention to her credit rating.
D. Be sure to invest in the stock market.
12. Noah paid all of his bills and put a bit of money in savings for the month. He has a little bit of money left over to spend on going shopping or going out with friends. What is he spending when he uses this money?
A. Credit
B. Proceeds
C. Gross Pay
D. Disposable Income
13. Ximena wants to buy a new car. She has chosen a car, saved a down payment, and figured out how much she can afford for the monthly payment. She knows that she applies for a loan the bank will check her credit report. What information will they find when they do?
A. Her employment history
B. Any loans or debt she has
C. Her credit car account numbers
D. Whether she has insurance for the car
14. Mateo is trying to buy a house and applied for a mortgage. He received a notice that the bank had turned him down for a loan. He wonders if there is some mistake because he has been saving up his money and he knows that he can afford the house. Does the potential lender have to tell him why he was turned down?
A. No, it is totally the lender's decision.
B. Yes, usually within 60 days if he requests this information.
C. No, most loans require that consumers waive that right.
D. Yes, the reason must be included with the rejection letter.
15. Aida has a house and some money in retirement accounts. She is getting married and wants to make sure that her estate is in order. What can she expect to do when she meets with an estate planner?
A. Go over her general health and life expectancy.
B. Set goals for her future earning and investments.
C. Sign the paperwork to open checking and savings accounts.
D. Review what she owns and how to best transfer it to her family.
ANSWERS:
6. C. Set up a personal checking account.
7. B. To borrow money for a purchase.
8. D. Equal Credit Opportunity Act (ECOA).
9. A. So they will know their rights as consumers.
10. B. Consumer.
11. A. Try not to borrow money.
12. D. Disposable Income.
13. B. Any loans or debt she has.
14. D. Yes, the reason must be included with the rejection letter.
15. D. Review what she owns and how to best transfer it to her family.