HR Block Budget Challenge Actual Exam Questions With All Complete Solutions

HR Block Budget Challenge Actual Exam Questions With All Complete Solutions Frank's electric bill has a cycle day of the 3rd and a due date 8 days later with a one day grace period. What happens if Frank pays his electric bill on the 12th of the month? - ANSWER- His payment is received after the due date but he will not be assessed a late fee because of the grace period. On the Budget Challenge Cash Flow Spreadsheet (CFS) (this file is downloadable on the "How to Play" page of the website), what column should interest earned from her checking account be entered? - ANSWER- Deposits Why is it important to review your personal information for accuracy when you receive an invoice? - ANSWER- To ensure you have received the correct invoice Why are there additional scoring penalties in Budget Challenge? - ANSWER- A.) To highlight behaviors that can cause damage to credit score B.) To penalize mistakes so that students can learn from them without losing real money C.) To accelerate longer-term real world consequences so that they are experienced inside the short simulation window D.) All of the answers are correct (answer is D) In order to represent a complete household budget in Budget Challenge, many typical day-to-day purchases that could be made with cash (such as groceries, gas, and clothing) are made using this: - ANSWER- Credit Card Which of the following choices will be 'locked' when the simulation launches (starts)? - ANSWER- Vendor selections (Cable, Cell, Auto Loan, Auto Ins, Student Loan, Utilities, Credit Card) The three main types of banks (Large Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to technology, convenience, personal experience, fees and savings rates. For this question, put aside all of the trade-offs and look only at savings rate offered on savings accounts. Rank the following from highest to lowest on the interest rates they offer to consumers on savings accounts. - ANSWER- Online Bank, Credit Union, Large Traditional Bank If the interest rate on a savings account is 0.018%, approximately how much money do you need to keep in this account for 1 year to earn enough interest to cover a single $9.99 Below-Minimum-Balance Fee? - ANSWER- $55,555 For electronically deposited funds, such as an employee's direct deposit, when must banks make those funds available to the employee? - ANSWER- the next business day The fee the bank charges the depositor of a bad check is... - ANSWER- a returned check fee The fee the bank charges the issuer of a bad check is... - ANSWER- Non-sufficient funds fee (NSF) What is the best way to pay a bank fee? - ANSWER- Do Nothing. Banks immediately deduct fees from your account. What is overdraft protection (ODP)? - ANSWER- A service to automatically transfer available funds from a linked account to cover purchases, prevent returned checks and declined items when you don't have enough money in your checking account at the time of the transaction. What type of accounts can be linked to a checking account for overdraft protection? - ANSWER- Savings account, credit card, or another checking account What happens if you do not have enough funds in your linked account to cover the overdraft? - ANSWER- (All answers are correct)