Banzai Budgeting Pre-Test: Questions With Expert
Solutions
Why should you stay away from borrowing up to your credit limit? Right
Ans - Because it reflects poorly on your credit score.
You find evidence that your identity has been stolen. Who should you contact
first? Right Ans - The Federal Trade Commission.
Which of the following deductions are you most likely to see on your pay stub?
Right Ans - Social Security deduction.
What is the main purpose of the dual accounting method? Right Ans - To
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? Right Ans - Check your credit report.
What's a "hard inquiry"? Right Ans - When 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? Right
Ans - How many open accounts you have.
Your debt-to-income ratio.
Your payment history.
* All of the above.
What is a debt-to-income ratio? Right Ans - The 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.
*All of the above.
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? Right Ans
- Comprehensive.
Solutions
Why should you stay away from borrowing up to your credit limit? Right
Ans - Because it reflects poorly on your credit score.
You find evidence that your identity has been stolen. Who should you contact
first? Right Ans - The Federal Trade Commission.
Which of the following deductions are you most likely to see on your pay stub?
Right Ans - Social Security deduction.
What is the main purpose of the dual accounting method? Right Ans - To
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? Right Ans - Check your credit report.
What's a "hard inquiry"? Right Ans - When 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? Right
Ans - How many open accounts you have.
Your debt-to-income ratio.
Your payment history.
* All of the above.
What is a debt-to-income ratio? Right Ans - The 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.
*All of the above.
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? Right Ans
- Comprehensive.
