BYU FINANCIAL LITERACY FINAL TEST ACTUAL 2026/2027 QUESTIONS AND 100% CORRECT ANSWERS

BYU FINANCIAL LITERACY FINAL TEST ACTUAL 2026/2027 QUESTIONS AND 100% CORRECT ANSWERS 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 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) 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 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:// 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 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 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 Federal Reserve does which of the following?