short worksheets and short quiz

FP/120 WEEK 3 QUIZ

1. Which of the following is NOT a valid reason for borrowing?

Purchasing a new dishwasher

Paying for everyday living expenses

Buying a car to start a new job

Paying for a medical emergency

2. Which of the following electronically subtracts money from your savings or checking account to pay for goods and services?

A credit card

Closed-end credit

A debit card

A gift card

3. Tanya received a $1,000 loan from the bank for a vacation. The bank is using the simple interest formula for this one-year, 9% loan. What is her total interest?

$9

$45

$90

$1,009

4. The expected value at the end of a lease is called the

Invoice price

Sticker price

Capitalized cost

Residual value

5. Which of the following is a disadvantage of renting?

Renters have fewer responsibilities than home owners.

Tenants cannot take tax deductions for mortgage interest and property tax.

Renters usually do not have to be concerned with maintenance and repairs.

Taking possession of a rental unit is less expensive than buying a home.

6. What should a home buyer consider when evaluating a house?

Zoning laws

School system

Property values of the community

All of these should be evaluated.

7. This type of financial aid typically does not need to be repaid

Pell grants

Scholarships

Employer tuition benefits

All of the above

8. A temporary postponement of student loan payments is

Reduction

Consolidation

Deferment

Forgiveness