FIN 101 Final Practice || A+ Certified.
The number of unbanked or underbanked households in the United States is approximately:
- 5% of all households.
- 10 million households.
- 10% of all households.
- 34 million households. correct answers 34 million households.
Rank the following types of loans from least expensive to most expensive.
I.Payday loan.
II.Cash advance on a credit card.
III.Pawnshop loan.
IV.Subsidized student loan.
- II, I, III, IV
- IV, I, II, III
- IV, II, III, I
- I, II, III, IV correct answers IV, II, III, I
All the following are mainstream financial service providers except:
- credit union.
- store credit card.
- Ford Motor Finance Company.
- title Loan lender. correct answers title Loan lender.
All of the following are alternative financial service providers except:
- check cashing services.
- pawn shop.
- payday lender.
- Target store card. correct answers Target store card.
Why do consumer advocates advise against using alternative financial services?
- Because they have a conflict of interest and invest in bank stock.
- Because of the poor customer service provided by alternative financial service providers.
- Because the amount that can be borrowed is too little to get through an emergency.
- Because of the high-cost associated with the loans and other services. correct answers Because
of the high-cost associated with the loans and other services.
Which of the following personal loan options would be the most appropriate for use as an
emergency source of funds?
- Payday loan.
,- Installment loan.
- Line of credit.
- Deposit advance. correct answers Line of credit.
A personal loan is a:
- Small dollar loan used to pay bills or make purchases.
- Payday loan.
- Installment loan.
- Line of credit. correct answers Small dollar loan used to pay bills or make purchases.
Requesting an advance on a paycheck from an employer
- is against the law.
- provides a low-cost loan alternative.
- must be honored by employers under federal employment laws.
- provides a low-cost loan alternative and must be honored by employer under federal
employment laws. correct answers provides a low-cost loan alternative.
What percentage of adults living in the United States have a credit card?
- 25%.
- 50%.
- 75%.
- 95%. correct answers 75%.
Friends and family can be good sources of low-cost loans, except that
- Friends may not have the money to lend.
- Family members may also be struggling financially.
- Interest rates charged by alternative financial service providers are cheaper.
- Friends may not have the money to lend and family members may also be struggling
financially. correct answers Friends may not have the money to lend and family members may
also be struggling financially.
Compared with repayment plans based on a borrower's income, the standard repayment plan will
generally:
- Minimize the amount of interest paid.
- Payoff the loan more quickly.
- Have a higher monthly payment.
- All of these answer choices are correct. correct answers All of these answer choices are correct.
All of the following are types of federal financial aid awards, except:
- work-study.
,- on campus employment.
- grants.
- student loans. correct answers on campus employment.
The first step in seeking federal student aid from a college or university is to
- Evaluate the award letter from the school.
- Receive an admissions letter from a college or university.
- Submit the Free Application for Federal Student Aid form online.
- Determine whether you prefer a subsidized or unsubsidized loan. correct answers Submit the
Free Application for Federal Student Aid form online.
All of the following are true of the FAFSA form except that:
- it is required to determine eligibility for federal grants, work-study, and student loans.
- it is used by other financial aid organizations.
- it is rather expensive to complete and file, and should only be done as a last resort.
- it often requires financial information about the student and their parents. correct answers it is
rather expensive to complete and file, and should only be done as a last resort.
Financial aid award notifications are sent
- from each school indicated on the student's FAFSA form.
- from the U. S. Department of Education.
- from the nearest college or university.
- only from public schools since private schools are not eligible for federal financial aid. correct
answers from each school indicated on the student's FAFSA form.
The reason automobiles should not be considered an investment is because they
- appreciate in value over time.
- provide an essential service in providing household income.
- depreciate in value over time.
- help save time and effort. correct answers depreciate in value over time.
All of the following factors combine to help determine whether a vehicle is a value except:
- Low price.
- High quality.
- Level of style and fun.
- Both low price and high quality. correct answers Level of style and fun.
When shopping for a new car, which of the following should be the first step in the buying
process?
- Shop for a loan.
, - Obtain an estimate for auto insurance.
- Calculate how much you can afford.
- Determine your transportation need. correct answers Determine your transportation need.
Which of the following factors helps determine whether a car is affordable?
- The monthly loan payment.
- The monthly insurance cost.
- The monthly gas and maintenance cost.
- All of these answer choices are correct. correct answers All of these answer choices are correct.
All the following help determine the amount of the loan that you can qualify for when auto
shopping except:
- The safety features of the car.
- The maximum payment you can fit into your budget.
- The interest rate of the loan.
- Both the maximum payment you can fit into your budget and the interest rate of the loan.
correct answers The safety features of the car.
All the following are features of renting, except that:
- provides flexibility over the short-term.
- requires a security deposit.
- requires a down payment.
- provides an environment where you do not need to worry about major repairs. correct answers
requires a down payment.
When searching for a rental property, what is the most important factor to consider?
- Safety.
- Appearance of neighborhood.
- Access to work.
- Access to neighborhood amenities. correct answers Safety.
Paul makes $2200 per month as a building maintenance engineer. He is shopping for a new
apartment. Using HUD guidelines, what is the maximum amount Paul should spend on rent per
month?
- $440.
- $660.
- $880.
- $1100. correct answers $660 (monthly income x 30%)
Which of the following are indicators that a landlord is taking adequate care of property?
The number of unbanked or underbanked households in the United States is approximately:
- 5% of all households.
- 10 million households.
- 10% of all households.
- 34 million households. correct answers 34 million households.
Rank the following types of loans from least expensive to most expensive.
I.Payday loan.
II.Cash advance on a credit card.
III.Pawnshop loan.
IV.Subsidized student loan.
- II, I, III, IV
- IV, I, II, III
- IV, II, III, I
- I, II, III, IV correct answers IV, II, III, I
All the following are mainstream financial service providers except:
- credit union.
- store credit card.
- Ford Motor Finance Company.
- title Loan lender. correct answers title Loan lender.
All of the following are alternative financial service providers except:
- check cashing services.
- pawn shop.
- payday lender.
- Target store card. correct answers Target store card.
Why do consumer advocates advise against using alternative financial services?
- Because they have a conflict of interest and invest in bank stock.
- Because of the poor customer service provided by alternative financial service providers.
- Because the amount that can be borrowed is too little to get through an emergency.
- Because of the high-cost associated with the loans and other services. correct answers Because
of the high-cost associated with the loans and other services.
Which of the following personal loan options would be the most appropriate for use as an
emergency source of funds?
- Payday loan.
,- Installment loan.
- Line of credit.
- Deposit advance. correct answers Line of credit.
A personal loan is a:
- Small dollar loan used to pay bills or make purchases.
- Payday loan.
- Installment loan.
- Line of credit. correct answers Small dollar loan used to pay bills or make purchases.
Requesting an advance on a paycheck from an employer
- is against the law.
- provides a low-cost loan alternative.
- must be honored by employers under federal employment laws.
- provides a low-cost loan alternative and must be honored by employer under federal
employment laws. correct answers provides a low-cost loan alternative.
What percentage of adults living in the United States have a credit card?
- 25%.
- 50%.
- 75%.
- 95%. correct answers 75%.
Friends and family can be good sources of low-cost loans, except that
- Friends may not have the money to lend.
- Family members may also be struggling financially.
- Interest rates charged by alternative financial service providers are cheaper.
- Friends may not have the money to lend and family members may also be struggling
financially. correct answers Friends may not have the money to lend and family members may
also be struggling financially.
Compared with repayment plans based on a borrower's income, the standard repayment plan will
generally:
- Minimize the amount of interest paid.
- Payoff the loan more quickly.
- Have a higher monthly payment.
- All of these answer choices are correct. correct answers All of these answer choices are correct.
All of the following are types of federal financial aid awards, except:
- work-study.
,- on campus employment.
- grants.
- student loans. correct answers on campus employment.
The first step in seeking federal student aid from a college or university is to
- Evaluate the award letter from the school.
- Receive an admissions letter from a college or university.
- Submit the Free Application for Federal Student Aid form online.
- Determine whether you prefer a subsidized or unsubsidized loan. correct answers Submit the
Free Application for Federal Student Aid form online.
All of the following are true of the FAFSA form except that:
- it is required to determine eligibility for federal grants, work-study, and student loans.
- it is used by other financial aid organizations.
- it is rather expensive to complete and file, and should only be done as a last resort.
- it often requires financial information about the student and their parents. correct answers it is
rather expensive to complete and file, and should only be done as a last resort.
Financial aid award notifications are sent
- from each school indicated on the student's FAFSA form.
- from the U. S. Department of Education.
- from the nearest college or university.
- only from public schools since private schools are not eligible for federal financial aid. correct
answers from each school indicated on the student's FAFSA form.
The reason automobiles should not be considered an investment is because they
- appreciate in value over time.
- provide an essential service in providing household income.
- depreciate in value over time.
- help save time and effort. correct answers depreciate in value over time.
All of the following factors combine to help determine whether a vehicle is a value except:
- Low price.
- High quality.
- Level of style and fun.
- Both low price and high quality. correct answers Level of style and fun.
When shopping for a new car, which of the following should be the first step in the buying
process?
- Shop for a loan.
, - Obtain an estimate for auto insurance.
- Calculate how much you can afford.
- Determine your transportation need. correct answers Determine your transportation need.
Which of the following factors helps determine whether a car is affordable?
- The monthly loan payment.
- The monthly insurance cost.
- The monthly gas and maintenance cost.
- All of these answer choices are correct. correct answers All of these answer choices are correct.
All the following help determine the amount of the loan that you can qualify for when auto
shopping except:
- The safety features of the car.
- The maximum payment you can fit into your budget.
- The interest rate of the loan.
- Both the maximum payment you can fit into your budget and the interest rate of the loan.
correct answers The safety features of the car.
All the following are features of renting, except that:
- provides flexibility over the short-term.
- requires a security deposit.
- requires a down payment.
- provides an environment where you do not need to worry about major repairs. correct answers
requires a down payment.
When searching for a rental property, what is the most important factor to consider?
- Safety.
- Appearance of neighborhood.
- Access to work.
- Access to neighborhood amenities. correct answers Safety.
Paul makes $2200 per month as a building maintenance engineer. He is shopping for a new
apartment. Using HUD guidelines, what is the maximum amount Paul should spend on rent per
month?
- $440.
- $660.
- $880.
- $1100. correct answers $660 (monthly income x 30%)
Which of the following are indicators that a landlord is taking adequate care of property?
