BYU Independent Study Financial Literacy Final
Exam Questions and Answers
How long will a chapter 7 bankruptcy usually remain on your credit report?
ten years
What is the definition of a "want"?
a. something you would like to have but have to purchase on credit
b. something you would like to have and something you must have
c. something you would like to have but can survive without
d. something you would like to have as long as it doesn't cost too much
something you would like to have but can survive without
A chapter 7 bankruptcy involves which of the following?
You get a fresh start on your finances
Paul wants to purchase a brand new truck. He has to take out a loan from the truck company in
order to pay. He will be making payments of $550 a month. If at any time he is unable to pay,
the truck company can take Paul's truck from him. Which of the following is the best term for
this scenario?
a. repossession
b. secured loan
c. all of the above
repossession and secured loan (all of the above)
What was the average college debt of graduating seniors?
,Approximately 29,000
Jacob, who accumulated some debt when he was in college, wants to eliminate his debt. Now
that he is working, he can put $100 extra toward his debt elimination. He owes $450 on his
credit card, $1,650 on his car, and $1,500 on his student loan. He determines that paying off
his credit card balance first is best since it has the highest APR and that his car loan has the
second highest APR. What is the total amount of Jacob's debt when he begins his debt
elimination plan?
a. $3,500
b. $2,600
c. $3,600
d. $3,450
$3,600
When is the best time to apply for a card?
When you have enough income to pay your debts
Which type of interest matches this definition: "interest that creditors add each year based on
what your principal balance is"?
a. simple interest
b. compound interest
c. variable interest
d. all of the above
compound interest
What indicates that you have a secure connection when you are purchasing something online?
a. https://
b. www.
,c. http://
d. .org
https://
Approximately how many American households or individuals declared chapter 13
bankruptcy in 2009?
350,000
Which is the best key component of financial literacy?
Being knowledgeable about credit and debt
What is something that you must have in order to survive?
a. a goal
b. a want
c. a budget
d. a need
a need
A chapter 11 bankruptcy is filed by while of the following?
Businesses
Which term refers to money that a lender will let you use (usually for a fee) and allows you to
pay back in the future?
a. incentive
b. budget
c. consolidation
d. credit
, credit
Good money management is important for which of the following reasons:
all of the above (learning how to make wise financial decisions, understanding that loans cost
more money than the amount actually borrowed, being able to invest in a savings account)
Which of the following is a key component of financial literacy?
a. being aware of your needs and wants
b. being educated about credit and debt
c. knowing how to make a financial plan
d. all of the above
being aware of your needs and wants, being educated about credit and debt, and knowing how
to make a financial plan (all of the above)
The best money-management strategy is which of the following?
Do not spend more money than you can pay back each month.
The Federal Reserve does which of the following?
a. determines what tax bracket you are in
b. determines the annual interest rate for our country
c. determines the maximum amount a person can save
d. determines how much to tax on goods sold
determines the annual interest rate for our country
Exam Questions and Answers
How long will a chapter 7 bankruptcy usually remain on your credit report?
ten years
What is the definition of a "want"?
a. something you would like to have but have to purchase on credit
b. something you would like to have and something you must have
c. something you would like to have but can survive without
d. something you would like to have as long as it doesn't cost too much
something you would like to have but can survive without
A chapter 7 bankruptcy involves which of the following?
You get a fresh start on your finances
Paul wants to purchase a brand new truck. He has to take out a loan from the truck company in
order to pay. He will be making payments of $550 a month. If at any time he is unable to pay,
the truck company can take Paul's truck from him. Which of the following is the best term for
this scenario?
a. repossession
b. secured loan
c. all of the above
repossession and secured loan (all of the above)
What was the average college debt of graduating seniors?
,Approximately 29,000
Jacob, who accumulated some debt when he was in college, wants to eliminate his debt. Now
that he is working, he can put $100 extra toward his debt elimination. He owes $450 on his
credit card, $1,650 on his car, and $1,500 on his student loan. He determines that paying off
his credit card balance first is best since it has the highest APR and that his car loan has the
second highest APR. What is the total amount of Jacob's debt when he begins his debt
elimination plan?
a. $3,500
b. $2,600
c. $3,600
d. $3,450
$3,600
When is the best time to apply for a card?
When you have enough income to pay your debts
Which type of interest matches this definition: "interest that creditors add each year based on
what your principal balance is"?
a. simple interest
b. compound interest
c. variable interest
d. all of the above
compound interest
What indicates that you have a secure connection when you are purchasing something online?
a. https://
b. www.
,c. http://
d. .org
https://
Approximately how many American households or individuals declared chapter 13
bankruptcy in 2009?
350,000
Which is the best key component of financial literacy?
Being knowledgeable about credit and debt
What is something that you must have in order to survive?
a. a goal
b. a want
c. a budget
d. a need
a need
A chapter 11 bankruptcy is filed by while of the following?
Businesses
Which term refers to money that a lender will let you use (usually for a fee) and allows you to
pay back in the future?
a. incentive
b. budget
c. consolidation
d. credit
, credit
Good money management is important for which of the following reasons:
all of the above (learning how to make wise financial decisions, understanding that loans cost
more money than the amount actually borrowed, being able to invest in a savings account)
Which of the following is a key component of financial literacy?
a. being aware of your needs and wants
b. being educated about credit and debt
c. knowing how to make a financial plan
d. all of the above
being aware of your needs and wants, being educated about credit and debt, and knowing how
to make a financial plan (all of the above)
The best money-management strategy is which of the following?
Do not spend more money than you can pay back each month.
The Federal Reserve does which of the following?
a. determines what tax bracket you are in
b. determines the annual interest rate for our country
c. determines the maximum amount a person can save
d. determines how much to tax on goods sold
determines the annual interest rate for our country
