Spending Unit

Front 1

Becky no longer wants to use her Clothes-R-US store credit card. What is the best thing she could do with the credit card?

Back 1

Close the account by phone and in writing, then destroy the card.

Front 2

When may a person view his/her credit report for free?

Back 2

Once a year, from each of the three main credit reporting agencies

Front 3

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which statement best describes what this is likely to mean for Bryce?

Back 3

The interest rates on his loan will be higher, since his credit score is low.

Front 4

Which is NOT an example of a data furnisher?

Back 4

Credit card company

Front 5

Jenny is 18-years-old and has applied for credit for the first time. Her credit application was declined because she has no credit history. What would you recommend Jenny do to being to build a positive credit history?

Back 5

Jenny should obtain a secured credit card.

Front 6

Jake's credit application has been declined because of his negative credit history. Which statement is most likely to be true?

Back 6

Jake has applied for 4 credit cards and a car loan in the past 6 weeks.

Front 7

Which of the following is NOT included in an individual's credit report?

Back 7

Medical information

Front 8

Edward wants to develop a positive credit history. How should he do this?

Back 8

maintain reasonable amounts of available credit

Front 9

Evan is writing a scholarship essay about the importance of responsible money management. He wants to explain the meaning of borrowing. Which statement below would explain the importance of understanding the process of borrowing money?

Back 9

When you are borrowing, you are spending future income.

Front 10

The financial counselor that Ariel consulted about her use of credit recommended that she keep her use of credit within safe boundaries. Ariel's financial counselor most likely told her to:

Back 10

Keep the total amount of money she has borrowed, not including her house, under 20% of her net income

Front 11

David earns $5,000 per month is at his accounting job. He has a student loan payment of $120, a car loan of $300. Which statement is true?

Back 11

David's credit payments are within the safe range for someone with his income.

Front 12

To answer the essay test question about the meaning of open-end credit, Ryan should include which statement?

Back 12

Credit is extended in advance so the borrower does not have to apply for credit each time credit is desired.

Front 13

Leah is trying to explain the difference between open- end credit and closed-end credit to her roommate. Which statement should she include in her description of closed-end credit?

Back 13

Equal payments are required on a regular basis until the loan is repaid

Front 14

Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true?

Back 14

Sarah can only obtain a credit card if she has a co-signer of proof of sufficient income to make the required payments.

Front 15

Tyler is trying to be responsible in using his new credit card and has heard there is a way to avoid paying interest on the things he charges. How can he LEGALLY avoid paying interest when using his credit card?

Back 15

Tyler needs to pay the credit card balance in full every month before the due date listed on the credit card statement.

Front 16

Paying the minimum payment on a credit card every month will:

Back 16

make a final amount paid substantially higher than the amount initially charged to the card

Front 17

Megan's credit card statement indicates that she is now paying a Penalty APR. Which scenario best describes what may have happened?

Back 17

Megan's missed making her January and February credit card payments while she was participating in her college's Study Abroad program when the friend she left in charge of sending the payments in forgot.

Front 18

Which of the following is an act of identity theft?

Back 18

Wrongfully acquiring and using someone's personal identification

Front 19

Carson wallet with his driver's license, a debit card and his credit card has been stolen. Which of the following is NOT something an identity thief might realistically do with this information?

Back 19

Take a college admissions exam in Carson's name

Front 20

Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she is shopping online?

Back 20

Use a credit card

Front 21

Matt wants to guard his personal information. Which personal information is LEAST LIKELY to be used by scammers?

Back 21

Phone Numbers

Front 22

Charis wants to decrease the risk of fraudulent use of her credit cards, Which strategy would be the most effective?

Back 22

Signing the back of her card with her signature and " Please see Picture ID "

Front 23

Which is a general rule hen dealing with credit reports to minimize identity theft?

Back 23

Check each credit reports at least once per year

Front 24

Which of the following actions will not make an individual vulnerable to identity theft ?

Back 24

Paying cash for a movie ticket

Front 25

Which of the following best describes the benefits of having insurance?

Back 25

Insurance combined with emergency savings provides a sense of financial security and peace of mind

Front 26

Maggie will need to pay $120 per month in order to purchase a health insurance policy. This monthly payment is known as the:

Back 26

premium

Front 27

Insurance can be purchased to protect one from which of the following losses?

Back 27

Health care expenses

Front 28

Tiffany was recently involved in a vehicle accident. In order to get her car fixed, her insurance company is requiring her to pay the first $500 of the repair bill because:

Back 28

her policy's deductible is $500

Front 29

James received his first medical bill of the year. It was a total of $1000. His health insurance policy has a $500 deductible and a 20% co-insurance. How much of the medical bill will Jade be responsible to pay?

Back 29

$600

Front 30

As part of Nicholas' new job, his employers will provide health, life, and disability insurance. Access to this insurance is provided in addition to his regular salary. This is known as:

Back 30

employee benefits

Front 31

If a person drives an automobile, they are required by law to have Automobile Liability insurance. In which situation would this type of policy protect the policyholder?

Back 31

James backed into a vehicle in the grocery store parking lost and caused $2000 in damages to his own car and $3000 in damages to the other vehicle.

Front 32

Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for Amanda?

Back 32

Amanda will receive any proceeds if the Eric dies

Front 33

It is recommended that life insurance be purchased when the:

Back 33

individual has dependents

Front 34

What is the difference between property and liability insurance?

Back 34

Property insurance pays for loss to the insured person whereas liability insurance pays for loss to other people

Front 35

Patty recently moved into a new apartment with her friend Emma. Who is responsible for purchasing renter's income?

Back 35

Patty & Emma

Front 36

What is NOT an example of a durable good?

Back 36

Food

Front 37

Perry would like to purchase a new car. What should he consider first in the planned buying process?

Back 37

Evaluate the opportunity cost and trade-offs to purchasing the car

Front 38

Sally is researching a new tablet and conducting research using a variety of sources. What is an example of an unbiased source?

Back 38

A product review from an independent company

Front 39

Why is investing in product research an important part of the planned buying process?

Back 39

Research enhances satisfaction

Front 40

Paxten is purchasing a new phone online. What is the best tip should he consider to do so safely and maximize his satisfaction?

Back 40

Review shipping and return policies in advance

Front 41

In which scenario below should renters insurance be considered?

Back 41

Zach and Leah have rented an apartment in an urban area.

Front 42

A rental agreement is often referred to as:

Back 42

a lease

Front 43

Chad has decided to rent an apartment and is gathering information to be sure he has enough money saved for all the expenses when his moves in. His landlord explained to him that he would need to pay a fee to cover any potential damages that might occur while Chad is living in the apartment. This fee is called:

Back 43

security deposit

Front 44

Rent is defined as:

Back 44

the cost of using someone else's property

Front 45

The equity that you build by making mortgage payments is:

Back 45

the value of the home after the mortgage debt is subtracted

Front 46

Alyssa is considering purchasing a car and wants to be sure she can afford to drive it during the school year when she doesn't have a job. Which expense WOULD NOT be considered part of the total transportation expenses:

Back 46

depreciation

Front 47

Brett borrowed money to purchase a vehicle without making a down payment and now he owes more on the vehicle than it is worth. This situation is referred to as:

Back 47

being upside down on the loan

Front 48

Melissa needs to a vehicle and is considering leasing one. This means:

Back 48

She would be renting the vehicle by making payments over time, although the vehicle title would remain with the lease grantor

Front 49

When making food decisions, which of the following is mot likely to be least expensive?

Back 49

Convenience Foods

Front 50

Shelby is working on her spending plan and would like to spend less on her food for 6 months as she saves toward purchasing a more reliable vehicle. As she makes her plan, which factor would be least important to consider:

Back 50

Her personal preferences