Examples of income: interest, monetary gifts, salary
True statement of a household budget: Income should be more than expenses.
True statement of a household budget: Essential expenses should be reduced.
Variable expenses: Mia's electricity bill total depends on how much electricity she uses each month, Scott pays the babysitter each month based on how many hours she worked
Importance of saving money: Saving money allows you to pay for expensive goods and services in the future.
Amount of money in savings account grows over time: You can earn interest on the money you keep in your savings account.
Good first step to saving more money: Start putting 15% of his income into savings.
Business that keeps, exchanges, and lends money to people: Bank
What can be cut from a person's budget in order to save money: Non-essential expenses
Examples of credit: interest income, student loans
Type of credit offers payment plans of up to 30 years or more: Home mortgage
Type of credit used in place of money, allowing you to buy things now and pay for them later: Credit card
Type of credit most likely used for a large home renovation: Personal loan
Banks and lenders use to evaluate ability to repay a loan: Credit score
Joan's house is considered: Collateral
Excellent credit score: 800
Risks of taking on debt: It could affect your ability to take out other loans, It could cause you to lose your collateral if not paid off, It might result in the interest rates on other loans to increase
Fee based on a percentage of money borrowed: Interest
Method of paying for education that must be repaid: Student loan
Method of paying for education based on merit: Scholarship
Method of paying for education based on need: Grant
Situation faced by people who cannot repay their loans: Bankruptcy
Type of bankruptcy where the individual loses all of their assets: Chapter 7
Which are examples of income? Select all that apply.
(2 points)
interest
monetary gifts
mortgage
rent
salary
Which statement is true of a household budget?
(1 point)
Essential expenses should be reduced.
Income should be more than expenses.
Interest should not be calculated as income.
Variable expenses should be removed.
Which statement is true of a household budget?
(1 point)
Essential expenses should be reduced.
Income should be more than expenses.
Interest should not be calculated as income.
Variable expenses should be removed.
Which statements describe variable expenses? Select the all that apply.
(1 point)
Chrystal pays $120 each month for access to high-speed internet at her house.
☐ Gemma's mortgage payment is exactly $784.56 every month.
John makes an $89 payment each month on his new mobile phone.
Mia's electricity bill total depends on how much electricity she uses each month
Scott pays the babysitter each month based on how many hours she worked
Why is it important to save money?
(1 point)
If you have money in savings, you won't be charged interest on your loans.
If you save money now, you will have multiple bankruptcy options in the future
Saving money allows you to pay for expensive goods and services in the future.
Saving money is a requirement once you start eaming a regular salary.
How does the amount of money in your savings account grow over time?
(1 point)
Banks who are insured through FDIC add money to your savings account each month.
Money from your checking account is automatically moved into your savings account every mont
Money in your savings account earns a certain amount of principal each year.
You can earn interest on the money you keep in your savings account.
How does the amount of money in your savings account grow over time?
(1 point)
Banks who are insured through FDIC add money to your savings account each month
Money from your checking account is automatically moved into your savings account every month
Money in your savings account earns a certain amount of principal each year
You can eam interest on the money you keep in your savings account
George wants to start saving more money. What is a good first step for him to follow?
(1 point)
Identity and cut all essential expenses
Start putting 15% of his income into savings.
Reduce spending on all expenses
Track his expenses for one month
What is a business that keeps, exchanges, and lends money to people?
(1 point)
account
bank
interest
◎ loan
What can be cut from a person's budget in order to save money?
(1 point)
O essential expenses
☐ income from wages
O income from interest
Onon-essential expenses
Which are examples of credit? Select all that apply.
(1 point)
checking accounts
interest income
☐ mortgage payments
savings accounts
student loans
Which type of credit typically offers payment plans of up to 30 years or more?
(1 point)
O car loan
credit card
home mortgage
personal loan
Which type of credit is used in place of money, allowing you to buy things now and pay for them later?
(1 point)
credit card
Obankruptcy
O mortgage
personal loan
Which type of credit would you most likely use if you wanted to pay for a large home renovation?
(1 point)
car loan
O credit card
personal loan
student loan
What do banks and other lenders use to evaluate your ability to repay a loan?
(1 point)
bankruptcy
credit score
debit
Ointerest rate
If Joan is unable to pay her mortgage, the bank may take her house away from her. Which of the lolowing best describes Joun's house?
(1 point)
bankrupticy
collateral
Credit
Interest
Which of the following is an excellent credit score?
(1 point)
300
400
800
900
Which statements describe a risk of taking on debt? Select the all that apply
(1 point)
It allows you to buy things now and pay later
☐ It could affect your ability to take out other loans.
☐ It could cause you to lose your collateral if not paid off.
☐ It does not affect your credit score if you pay it off in a timely manner
It might result in the interest rates on other loans to increase
What is the word for a fee based on a percentage of money borrowed?
(1 point)
O collateral
O credit
Odebt
O interest
Which method of paying for education must be repaid?
(1 point)
O grant
scholarship
student loan
work-study
Which method of paying for education is offered to students based on merit?
(1 point)
O credit
O grant
scholarship
student loan
Which method of paying for education is offered to students based on need?
(1 point)
O credit
O grant
scholarship
student loan
Which term describes the situation faced by people who cannot repay their loans?
(1 point)
Obankruptcy
O collateral
O credit
interest
In which type of bankruptcy does the individual lose all of their assets?
(1 point)
Chapter 7
Chapter 13
Both chapters 7 and 13
Neither chapters 7 and 13
Reminder that some of these are multi choice questions so the questions that have multiple correct answers are more than likely multi choice.
1 answer