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FP 120 Week 2 Individual Assignment Week 2 Quiz

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FP 120 Week 2 Individual Assignment Week 2 Quiz
Complete the Week 2 Quiz.
Essential of Personal Finance
Week Two Quiz
Please answer the following multiple choice questions. You can underline the correct answer or highlight it in a color or just post the correct “a”, “b” etc by the appropriate questions. Just so long as I can understand what your choice is for the answer.
 When done please submit your quiz/answers through the appropriate channels for the New Classroom. You have until the end of this class week (Monday mid-night Arizona time to complete this quiz and have it posted for grading). Good luck to all of you I am sure you will all do a great job on this.
  1. What does Suze identify as a primary emotion preventing people from achieving financial freedom?
    1. Love
    2. Fear
    3. Hate
    4. Joy
  1. What is a monthly cash-flow statement?
    1. A record of your variable and fixed expenses
    2. A record of your variable expenses only
    3. A record of how much money you have coming in and how much you have going out
    4. A record of your fixed expenses only
  1. Why is a monthly cash-flow statement averaged over 12 months?
    1. It takes a year to get a feel for how much money you really spend.
    2. Some expenses only occur once a year, twice a year or seasonally, so they need to be averaged over a year.
    3. To take into consideration any bonuses that you may get.
    4. The amount you earn from investments changes each month.
4.      Which of the following is considered “unsecured” debt?
a.       A mortgage
b.      A car loan
c.       A 401k loan
d.      Credit-card debt
5.      Which is the best way to pay off credit-card debt?
a.       Dip into your emergency savings.
b.      Pay the largest portion you can afford from your salary every month.
c.       Take out a loan from your 401k at a lower interest rate than the credit card.
d.      Use a HELOC (Home Equity Line of Credit) to pay off your balance.
6.      In the event of bankruptcy, which of the following cannot be taken from you?
a.       A 401k retirement account
b.      Emergency savings
c.       Stock investments
d.      Money in your checking account
7.      Which of the following is considered a “very good” credit score:
a.       Above 440
b.      Above 760
c.       Above 570
d.      Above 1000
8.      Which of the following is NOT a credit score bureau?
a.       Equifax
b.      Experian
c.       TransUnion
d.       Fair Isaac Corporation (FICO)
9.    When you have paid off debt on a high-interest credit card, what should you do with the account?
a.       Charge small amounts on the card to keep it in use.
b.      Transfer some of your other debt to the card you’ve just freed up.
c.       Close the account.
d.      Cut up the credit card or stash it in a safe place.
10.   When selecting and using a debit card, you should avoid:
a.       Monitoring your account every other day.
b.      Prepay cards that allow you to load more money onto them.
c.       Debit cards tied to your checking account.
d.      Overdraft protection that allows you to spend more than you have.
11.  Which of the following is the most effective way to improve your credit score?
a.   Pay your bills on time.
b.   Reduce your debt-to-credit-limit ratio.
c.   Never exceed your credit limit.
d.  Close your credit-card accounts as soon as you pay them off.
12.  When you have serious credit card debt, where is the best place to seek help?
a.   From a debt consolidation company.
b.   From an independent consumer credit counseling agency, such as AICCCA or the National Foundation for Credit Counseling.
c.   From a credit deferral service.
d.   From a private loan organization, such as a bank or credit union.
13.  What is the best type of loan to take out for education?
a.   A federal student loan—the most common is the Stafford loan
b.   A private loan through a credit union
c.   A home equity line of credit
d.   A line of credit with a high monthly limit
14.  Students should aim to keep their total student loan debt to:
a.   Less than the salary they are likely to make their first year out of school
b.   Less than 200% of their first-year salary
c.   About the total cost of four years of their education
d.   Less than 150% of their first-year salary
15.  Private bank loans for education are not the best way to finance your education because:
a.   They have a variable interest rate that can skyrocket
b.   Their interest rate increases by 1% every year
c.   They are flexible with repayment options
d.   They can be consolidated with your federal loans
16.  What are two ways you can delay student loan payments?
a.   Deferment or payment desist
b.   Deferment or forbearance
c.   Deferment or exoneration
d.   Deferment or sequesterment
17.  What is the difference between a subsidized and an unsubsidized Stafford loan?
a.  A subsidized loan is based on student need, whereas an unsubsidized loan is available to any student, regardless of financial need.
b.  A subsidized loan is interest-free for the first 36 months after graduation; an unsubsidized loan is interest-free for only 6 months after graduation.
c.  A subsidized loan does not have to be paid back on the death of a student, but an unsubsidized loan has to be.
d.  A subsidized loan is only available to foreign students.
18.  What is the first step you must take to "stand in your truth" financially?
a.       Create a personal cash-flow statement that enables you to compare your monthly income and expenses.
b.      Write down your financial goals and say them aloud daily.
c.       Examine the mistakes your parents made with money and vow not to repeat them.
d.      Find five ways to trim your expenses by at least 10%.
19.  The smartest way to build an emergency fund is to:
a.       Set aside small amounts monthly through an automatic savings plan
b.      Open a home equity line of credit (HELOC) that you can tap into in case of emergency
c.       Take out multiple credit cards with high credit limits that you can tap into in emergencies
d.      Go on a strict budget and save as much as possible until you have an emergency fund
20.  Where is the best place to keep your emergency savings?
a.       A 12-month bank certificate of deposit insured by the FDIC (Federal Deposit Insurance Corporation)
b.      A bank or credit-union savings account insured by the FDIC or NCUA W
c.       A money-market mutual fund with the highest rate available
d.      A diversified target-date mutual fund

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