Financial Literacy Exam- Unit 1: Money
Management Questions and Answers.
Which of the following is not a key component of financial literacy? - Answer paying the
minimum amount due on your credit cards each month
Pick the scenario that best represents the most positive financial outcome. - Answer Madeline
has one credit card with a $500 maximum limit. Using her credit card will help her establish a
good credit rating to show loan institutions that she is financially responsible. She does not pay
any financial costs because she pays the entire amount she borrowed on that card each month
so she does not incur interest. When the time comes that she desires to purchase a car, she will
be a good candidate to receive a loan.
The best money-management strategy is which of the following? - Answer Do not spend more
money than you can pay back each month.
A chapter 7 bankruptcy involves which of the following? - Answer You get a fresh start on your
finances.
Good money management is important for which of the following reasons: - Answer learning
how to make wise financial decisions, understanding that loans cost more money than the
amount actually borrowed, being able to invest in a savings account (all of the above)
Which is the main reason some people choose to file a chapter 13 bankruptcy? - Answer It is a
more conservative approach to bankruptcy.
When is the best time to start learning money management principles? - Answer throughout
your lifetime, to be ready to implement when you have money to manage
Who should be most responsible for your finances? - Answer you
Define debt. - Answer the state of owing money to someone or something
Approximately how many American households or individuals declared chapter 13 bankruptcy
in 2009? - Answer 350,000
Excessive debt does not contribute to which of the following? - Answer self-sufficiency
Management Questions and Answers.
Which of the following is not a key component of financial literacy? - Answer paying the
minimum amount due on your credit cards each month
Pick the scenario that best represents the most positive financial outcome. - Answer Madeline
has one credit card with a $500 maximum limit. Using her credit card will help her establish a
good credit rating to show loan institutions that she is financially responsible. She does not pay
any financial costs because she pays the entire amount she borrowed on that card each month
so she does not incur interest. When the time comes that she desires to purchase a car, she will
be a good candidate to receive a loan.
The best money-management strategy is which of the following? - Answer Do not spend more
money than you can pay back each month.
A chapter 7 bankruptcy involves which of the following? - Answer You get a fresh start on your
finances.
Good money management is important for which of the following reasons: - Answer learning
how to make wise financial decisions, understanding that loans cost more money than the
amount actually borrowed, being able to invest in a savings account (all of the above)
Which is the main reason some people choose to file a chapter 13 bankruptcy? - Answer It is a
more conservative approach to bankruptcy.
When is the best time to start learning money management principles? - Answer throughout
your lifetime, to be ready to implement when you have money to manage
Who should be most responsible for your finances? - Answer you
Define debt. - Answer the state of owing money to someone or something
Approximately how many American households or individuals declared chapter 13 bankruptcy
in 2009? - Answer 350,000
Excessive debt does not contribute to which of the following? - Answer self-sufficiency
