SFL 260 Final Exam Comprehensive
Review UPDATED ACTUAL Exam
Questions and CORRECT Answers
People who are good at budgeting figure out ways to make saving easier and spending more
difficult. Select all the ways that this can be accomplished: - CORRECT ANSWER- ✔✔Set
up an automatic transfer from checking to savings each month.
Determine a maximum amount that can be spent by either spouse without first discussing the
purchase
Don't grocery shop hungry
An emergency fund becomes even more important for financial well-being after a home is
purchased. Why? - CORRECT ANSWER- ✔✔If a family runs into financial trouble, and
they don't have the money to pay their monthly mortgage, they stand to lose their home and
any equity in the home.
Home ownership increases the likelihood that a person will face large unexpected expenses.
Homes can be expensive to maintain.
What was the 2017 minimum down payment requirement for a standard FHA loan? -
CORRECT ANSWER- ✔✔3.5%
Which of the following principles is the big picture take-away from the Cash Management
module? - CORRECT ANSWER- ✔✔Your liquid monetary assets should be kept in an
account that takes on an appropriate amount of risk
Risk and return go together. Cash isn't very risky but has next to no return. In fact the cash in
your wallet is losing value due to inflation. Which option could you pick to take on the
smallest amount of risk and still earn some interest? - CORRECT ANSWER- ✔✔certificates
of deposit
In the Dave Ramsey Video we watched for the budgeting discussion, Dave used all of the
following analogies to help us understand budgeting except which of the following? -
CORRECT ANSWER- ✔✔Your budget is the dam on the river of your cash flow.
,Select each statement that is true about setting goals. - CORRECT ANSWER- ✔✔Depending
on what a person is trying to accomplish a very different approach might be the right way to
go.
If you don't know where you want to go, then it doesn't matter which path you take.
According to the rule of thumb given in the Apply: Calculate Monthly Mortgage Payment
assignment, what is the maximum monthly mortgage payment a family making $120,000 a
year should consider? - CORRECT ANSWER- ✔✔$2,500
What makes a liquid asset "liquid"? - CORRECT ANSWER- ✔✔You can use it immediately
if needed
Which of the following is important to teach our children to help them become responsible
financial stewards? - CORRECT ANSWER- ✔✔How to create a budget
Hard work
Obtaining as much education as possible
Saving and sacrificing for what they need and want
Which of the following is a good example of a couple effectively implementing the practice
of "MAD" money? - CORRECT ANSWER- ✔✔Dan and Rachel each have $50 out of the
monthly budget that they can spend however they want, they don't need to discuss beforehand
how that money will be spent on.
According to the principle of stewardship, attaining material success is ________. -
CORRECT ANSWER- ✔✔a blessing that should be seen as a responsibility to bless others
What type of savings account is a very safe time deposit for a specified period of time
(normally between 3 months to 5 years), has a guaranteed rate of return, generally has higher
interest rate the longer the time period, and has an interest penalty if you withdraw early? -
CORRECT ANSWER- ✔✔Certificate of Deposits (CDs)
True or False. According to teachings of the Church, it is best to finance your education
through loans rather than paying as you go. - CORRECT ANSWER- ✔✔False
, According to our text, to what was the effect of inflation compared? - CORRECT ANSWER-
✔✔Clothes moth
TVM problems with recurring payments utilize which function on the financial calculator? -
CORRECT ANSWER- ✔✔PMT
Monetary assets refer to ________. - CORRECT ANSWER- ✔✔financial resources that are
legal tender (cash) and/or can be converted to legal tender very quickly (liquid assets)
The primary purpose(s) of SFL 260: Family Finance is to teach you to: - CORRECT
ANSWER- ✔✔Magnify your financial stewardship
Use prudent financial management to bless yourself, your family, and others
True or False. A family budget is a spending plan to meet future needs and wants in harmony
with available family income. - CORRECT ANSWER- ✔✔True
According to Robert D. Hales, what are the four most caring words? - CORRECT ANSWER-
✔✔We can't afford it
In Time Value of Money calculations, "I" stands for ________. - CORRECT ANSWER-
✔✔Annual interest percentage rate expressed as a whole number (e.g., 7.5% = 7.5)
True or False. Credit Unions are owned by their members, rather than by stockholders. -
CORRECT ANSWER- ✔✔True
It's September 2068 and Jared and Katrina are sharing a caffeine-free Diet Coke at a pub in
Dublin. Jared, in a whimsical tone, reminisces about their BYU days 50 years before,
"Katrina, what do you remember most?" Katrina lights up with vivid recollection of her SFL
260 experience, "In SFL 260, we were told to always remember three things:"
"Life is hard! ________!" - CORRECT ANSWER- ✔✔But you can do hard things!
What is the acronym that described good family financial goals? - CORRECT ANSWER-
✔✔SMART
Review UPDATED ACTUAL Exam
Questions and CORRECT Answers
People who are good at budgeting figure out ways to make saving easier and spending more
difficult. Select all the ways that this can be accomplished: - CORRECT ANSWER- ✔✔Set
up an automatic transfer from checking to savings each month.
Determine a maximum amount that can be spent by either spouse without first discussing the
purchase
Don't grocery shop hungry
An emergency fund becomes even more important for financial well-being after a home is
purchased. Why? - CORRECT ANSWER- ✔✔If a family runs into financial trouble, and
they don't have the money to pay their monthly mortgage, they stand to lose their home and
any equity in the home.
Home ownership increases the likelihood that a person will face large unexpected expenses.
Homes can be expensive to maintain.
What was the 2017 minimum down payment requirement for a standard FHA loan? -
CORRECT ANSWER- ✔✔3.5%
Which of the following principles is the big picture take-away from the Cash Management
module? - CORRECT ANSWER- ✔✔Your liquid monetary assets should be kept in an
account that takes on an appropriate amount of risk
Risk and return go together. Cash isn't very risky but has next to no return. In fact the cash in
your wallet is losing value due to inflation. Which option could you pick to take on the
smallest amount of risk and still earn some interest? - CORRECT ANSWER- ✔✔certificates
of deposit
In the Dave Ramsey Video we watched for the budgeting discussion, Dave used all of the
following analogies to help us understand budgeting except which of the following? -
CORRECT ANSWER- ✔✔Your budget is the dam on the river of your cash flow.
,Select each statement that is true about setting goals. - CORRECT ANSWER- ✔✔Depending
on what a person is trying to accomplish a very different approach might be the right way to
go.
If you don't know where you want to go, then it doesn't matter which path you take.
According to the rule of thumb given in the Apply: Calculate Monthly Mortgage Payment
assignment, what is the maximum monthly mortgage payment a family making $120,000 a
year should consider? - CORRECT ANSWER- ✔✔$2,500
What makes a liquid asset "liquid"? - CORRECT ANSWER- ✔✔You can use it immediately
if needed
Which of the following is important to teach our children to help them become responsible
financial stewards? - CORRECT ANSWER- ✔✔How to create a budget
Hard work
Obtaining as much education as possible
Saving and sacrificing for what they need and want
Which of the following is a good example of a couple effectively implementing the practice
of "MAD" money? - CORRECT ANSWER- ✔✔Dan and Rachel each have $50 out of the
monthly budget that they can spend however they want, they don't need to discuss beforehand
how that money will be spent on.
According to the principle of stewardship, attaining material success is ________. -
CORRECT ANSWER- ✔✔a blessing that should be seen as a responsibility to bless others
What type of savings account is a very safe time deposit for a specified period of time
(normally between 3 months to 5 years), has a guaranteed rate of return, generally has higher
interest rate the longer the time period, and has an interest penalty if you withdraw early? -
CORRECT ANSWER- ✔✔Certificate of Deposits (CDs)
True or False. According to teachings of the Church, it is best to finance your education
through loans rather than paying as you go. - CORRECT ANSWER- ✔✔False
, According to our text, to what was the effect of inflation compared? - CORRECT ANSWER-
✔✔Clothes moth
TVM problems with recurring payments utilize which function on the financial calculator? -
CORRECT ANSWER- ✔✔PMT
Monetary assets refer to ________. - CORRECT ANSWER- ✔✔financial resources that are
legal tender (cash) and/or can be converted to legal tender very quickly (liquid assets)
The primary purpose(s) of SFL 260: Family Finance is to teach you to: - CORRECT
ANSWER- ✔✔Magnify your financial stewardship
Use prudent financial management to bless yourself, your family, and others
True or False. A family budget is a spending plan to meet future needs and wants in harmony
with available family income. - CORRECT ANSWER- ✔✔True
According to Robert D. Hales, what are the four most caring words? - CORRECT ANSWER-
✔✔We can't afford it
In Time Value of Money calculations, "I" stands for ________. - CORRECT ANSWER-
✔✔Annual interest percentage rate expressed as a whole number (e.g., 7.5% = 7.5)
True or False. Credit Unions are owned by their members, rather than by stockholders. -
CORRECT ANSWER- ✔✔True
It's September 2068 and Jared and Katrina are sharing a caffeine-free Diet Coke at a pub in
Dublin. Jared, in a whimsical tone, reminisces about their BYU days 50 years before,
"Katrina, what do you remember most?" Katrina lights up with vivid recollection of her SFL
260 experience, "In SFL 260, we were told to always remember three things:"
"Life is hard! ________!" - CORRECT ANSWER- ✔✔But you can do hard things!
What is the acronym that described good family financial goals? - CORRECT ANSWER-
✔✔SMART
