Chapter 8 financial literacy Exam
Questions and Answers Graded A+
When you lease a car, you will usually not be responsible for major repair costs.
a. True b. False - Correct answer-a
The process of dividing up your debt into equal payments over a set period of time
is
a. depreciation
b. budgeting
c. amortization
d. refinancing - Correct answer-c
All of the following are required to be included in a credit card's disclosure terms
except
a. the annual percentage rate (APR)
b. the minimum finance charge on unpaid balances
c. cash advance fees
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, d. an amortization schedule - Correct answer-d
A rental agreement is also called a month-to-month agreement.
a. True b. False - Correct answer-a
A car loan typically does not require a down payment from the buyer.
a. True b. False - Correct answer-a
Which of the following is not an example of easy access credit?
a. title loan
b. upside-down loan
c. equity stripping
d. payday loan - Correct answer-b
During good economic times, interest rates are usually falling.
a. True b. False - Correct answer-b
To qualify for student loan forgiveness, you must
a. teach in an elementary or secondary school for at least five years
b. have a part-time or full-time job in the field that you majored in
c. have no other outstanding debt
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Questions and Answers Graded A+
When you lease a car, you will usually not be responsible for major repair costs.
a. True b. False - Correct answer-a
The process of dividing up your debt into equal payments over a set period of time
is
a. depreciation
b. budgeting
c. amortization
d. refinancing - Correct answer-c
All of the following are required to be included in a credit card's disclosure terms
except
a. the annual percentage rate (APR)
b. the minimum finance charge on unpaid balances
c. cash advance fees
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, d. an amortization schedule - Correct answer-d
A rental agreement is also called a month-to-month agreement.
a. True b. False - Correct answer-a
A car loan typically does not require a down payment from the buyer.
a. True b. False - Correct answer-a
Which of the following is not an example of easy access credit?
a. title loan
b. upside-down loan
c. equity stripping
d. payday loan - Correct answer-b
During good economic times, interest rates are usually falling.
a. True b. False - Correct answer-b
To qualify for student loan forgiveness, you must
a. teach in an elementary or secondary school for at least five years
b. have a part-time or full-time job in the field that you majored in
c. have no other outstanding debt
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
