CPB Final Exam Questions AND Correct Answers
"Pay yourself first" means you should assign a portion of your
income to saving and investing every month. - ✔✔True
ʺThe Lucky Sevenʺ rules can get you incredible deals on the
stuff you buy every day, but they only work if you: - ✔✔Use
them
A card issued by a bank that allows users to finance a
purchase - ✔✔credit card
A credit score is intended to measure: - ✔✔The risk of your
not repaying debt
A debit card cannot be used for online purchases. - ✔✔False
A decrease or loss in value - ✔✔depreciation
A detailed report of an individualʹs credit history - ✔✔credit
report
,A form of federal or state financial aid that does not need to
be repaid; usually given to students who demonstrate
financial need - ✔✔grant
A form of financial aid that does not need to be repaid;
usually awarded on the basis of academic, athletic or other
achievements - ✔✔scholarship
A form that is completed annually by current and prospective
college students to determine their eligibility for financial aid -
✔✔FAFSA
A four-year degree is necessary regardless of which career
youʹre entering. - ✔✔False
A good salesperson will answer a question with a question. -
✔✔True
A long-term rental agreement on a car; a form of secured
long-term debt - ✔✔lease
,A mutual fund portfolio that is properly diversified will have
all investment dollars located in
just one of four different classes of financial assets. - ✔✔False
A person becomes self-insured when: - ✔✔Their kids are
grown, they have no debt, and they have fully funded
retirement
A person that starts his or her own business -
✔✔entrepreneur
A program that allows students to work part time while
continuing their studies - ✔✔work study
A reason that people need to save and invest is to: -
✔✔Enable their money to make money
A retirement plan found in nonprofit organizations such as
churches, hospitals and schools. - ✔✔403(b)
A savings account sold by an insurance company, designed to
provide payments to the holder at
, specified intervals, usually after retirement. - ✔✔Annuity
A two-year government-supported college that offers an
associateʹs degree - ✔✔community college
A wise college plan does not include: - ✔✔Finding the most
expensive, prestigious college so that you can impress future
employers
A written budget, if followed, removes ____ from your
finances. - ✔✔all of the above
A written cash flow plan - ✔✔budget
A yearly fee thatʹs charged by the credit card company for the
convenience of the credit card - ✔✔annual fee
A young investor willing to take moderate risk for above-
average growth would be most
interested in: - ✔✔Mutual funds
"Pay yourself first" means you should assign a portion of your
income to saving and investing every month. - ✔✔True
ʺThe Lucky Sevenʺ rules can get you incredible deals on the
stuff you buy every day, but they only work if you: - ✔✔Use
them
A card issued by a bank that allows users to finance a
purchase - ✔✔credit card
A credit score is intended to measure: - ✔✔The risk of your
not repaying debt
A debit card cannot be used for online purchases. - ✔✔False
A decrease or loss in value - ✔✔depreciation
A detailed report of an individualʹs credit history - ✔✔credit
report
,A form of federal or state financial aid that does not need to
be repaid; usually given to students who demonstrate
financial need - ✔✔grant
A form of financial aid that does not need to be repaid;
usually awarded on the basis of academic, athletic or other
achievements - ✔✔scholarship
A form that is completed annually by current and prospective
college students to determine their eligibility for financial aid -
✔✔FAFSA
A four-year degree is necessary regardless of which career
youʹre entering. - ✔✔False
A good salesperson will answer a question with a question. -
✔✔True
A long-term rental agreement on a car; a form of secured
long-term debt - ✔✔lease
,A mutual fund portfolio that is properly diversified will have
all investment dollars located in
just one of four different classes of financial assets. - ✔✔False
A person becomes self-insured when: - ✔✔Their kids are
grown, they have no debt, and they have fully funded
retirement
A person that starts his or her own business -
✔✔entrepreneur
A program that allows students to work part time while
continuing their studies - ✔✔work study
A reason that people need to save and invest is to: -
✔✔Enable their money to make money
A retirement plan found in nonprofit organizations such as
churches, hospitals and schools. - ✔✔403(b)
A savings account sold by an insurance company, designed to
provide payments to the holder at
, specified intervals, usually after retirement. - ✔✔Annuity
A two-year government-supported college that offers an
associateʹs degree - ✔✔community college
A wise college plan does not include: - ✔✔Finding the most
expensive, prestigious college so that you can impress future
employers
A written budget, if followed, removes ____ from your
finances. - ✔✔all of the above
A written cash flow plan - ✔✔budget
A yearly fee thatʹs charged by the credit card company for the
convenience of the credit card - ✔✔annual fee
A young investor willing to take moderate risk for above-
average growth would be most
interested in: - ✔✔Mutual funds
