TCAR Post-Test (Answers) NEWEST 2025/2026 ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW!!

What is the best way to create a budget? - CORRECT ANSWERDivide your income into categories and plan how much you'll spend on each. How does a debit card work? - CORRECT ANSWERIt lets you pay with the money in your checking account. Which of the following is true about credit cards? - CORRECT ANSWERIf 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 ANSWERFile 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 ANSWERPaystub When moving to a new rental, you'll likely need to pay a security deposit. How much is this often? - CORRECT ANSWERFirst and last month's rent. You got $200 from your grandma for your birthday. What should you do first? - CORRECT ANSWERRecord 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 ANSWERStatement What happens if you go into debt? - CORRECT ANSWERYou'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 ANSWERLease If you pay off only the amount owed on your credit card each month, but don't pay it off completely, what's that called? - CORRECT ANSWERMaking your minimum payment. Your account statement arrived. You had a balance of -$52.79. After the $307.74 deposit from Roland's Bookstore, what is your new account balance? Hint: Click on the image to zoom in. - CORRECT ANSWER$254.95 On January 8th your account was charged $30.00 for an overdraft fee. Why did that happen? - CORRECT ANSWERYou spent more than what was in your account. Why wouldn't every purchase you made show up on your account statement? - CORRECT ANSWERSome take time to clear. How often are you required to make payments on an auto loan? - CORRECT ANSWEROnce a month. Your new health insurance has a $4,000 deductible. What does that mean? - CORRECT ANSWERYou'll need to pay $4,000 on medical expenses each year before your insurance will kick in. What's the difference between net pay and gross pay? - CORRECT ANSWERGross pay is your total paycheck and net pay is what you take home after taxes. Your employer withholds money from each paycheck. What is this money used for? - CORRECT ANSWERTo pay for federal and state taxes. Which of the following would you budget for in "Utilities"? - CORRECT ANSWERYour electric and heating bills. What is a health insurance copay? - CORRECT ANSWERThe amount you pay when you visit a doctor. There are many costs associated with owning a car. Which of these is not something you'll need to pay for? - CORRECT ANSWERArbitration You walk outside only to find that your car has been towed because you were parked illegally. You paid the towing company with a check and took this unexpected expense from which budget? - CORRECT ANSWERReserves What is double-entry accounting? - CORRECT ANSWERA 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 ANSWERWithdrawal Why should you stay away from borrowing up to your credit limit? - CORRECT ANSWERBecause it reflects poorly on your credit score. You find evidence that your identity has been stolen. Who should you contact first? - CORRECT ANSWERThe Federal Trade Commission. Which of the following deductions are you most likely to see on your pay stub? - CORRECT ANSWERSocial Security deduction. What is the main purpose of the dual accounting method? - CORRECT ANSWERTo record every transaction twice, reflecting them in accounts and in your budget. If you wanted to know what factors contributed to your credit score, how could you find out? - CORRECT ANSWERCheck your credit report. What's a "hard inquiry"? - CORRECT ANSWERWhen 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 ANSWERHow many open accounts you have. Your debt-to-income ratio. Your payment history. What is a debt-to-income ratio? - CORRECT ANSWERThe 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 ANSWERComprehensive What percentage of a home price is typically required for your down payment if you want to avoid purchasing private mortgage insurance (PMI)? - CORRECT ANSWER20 percent Which of these is not identity theft? - CORRECT ANSWERA 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 ANSWERIt 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 ANSWERYou'll start to accrue interest on your credit card balance. You don't have dependents. Do you still need life insurance? - CORRECT ANSWERYes; it can pay for medical and funeral costs. What would be the main benefit of paying in cash for a car instead of taking out a loan? - CORRECT ANSWERYou don't have to pay interest because you won't have a loan. What does APR stand for? - CORRECT ANSWERAnnual Percentage Rate Which of the following is true about tax returns? - CORRECT ANSWERThe number of exemptions you declare will affect if and how much you get on your return. What is a 401(k)? - CORRECT ANSWERAn employer sponsored retirement plan where you contribute some of your paycheck. In order to qualify for a mortgage with good rates, you have to have a high enough . - CORRECT ANSWERCredit score. Which of the following is true about car loan terms? - CORRECT ANSWERThe shorter the term, the lower the interest rate. What is the best protection against uninsured drivers? - CORRECT ANSWERUninsured motorist coverage. When you apply for a mortgage, the lending institution will likely use your gross income to help decide if you qualify. What is that? - CORRECT ANSWERYour income before taxes are taken out. When buying something with a loan, you can lower the amount you pay each month by paying a higher . - CORRECT ANSWERDown payment. You got in a car accident and repairs will cost $3,000. After filing your insurance claim, you only paid $500. Why? - CORRECT ANSWERYour deductible is $500. Your is the amount you own in assets minus everything you owe. - CORRECT ANSWERNew Worth