Test Bank Solution Manual for BYU Independent Study on Financial Literacy Already Passed

Test Bank Solution Manual for BYU Independent Study on Financial Literacy Already Passed How long will a chapter 7 bankruptcy usually remain on your credit report? - Answers ten years A chapter 7 bankruptcy involves which of the following? - Answers You get a fresh start on your finances What was the average college debt of graduating seniors? - Answers Approximately 29,000 When is the best time to apply for a card? - Answers When you have enough income to pay your debts Approximately how many American households or individuals declared chapter 13 bankruptcy in 2009? - Answers 350,000 Which of the following is the best key component of financial literacy? - Answers Being knowledgeable about credit and debt A chapter 11 bankruptcy is filed by while of the following? - Answers Businesses Good money management is important for which of the following reasons: - Answers 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) The best money-management strategy is which of the following? - Answers Do not spend more money than you can pay back each month. Pick the scenario that best represents the most positive financial outcome - Answers Madeline has one credit card with a $500 maximum limit. Using her credit card will help her establish a good credit rating to show loan institutions that she is financially responsible. She does not pay any financial costs because she pays the entire amount she borrowed on that card each month so she does not incur interest. When the time comes that she desires to purchase a car, she will be a good candidate to receive a loan. Which of the these would contribute to going into debt? - Answers All of the above (spending more money than you make, buying big ticket items without planning on how to pay for them, taking money from your savings to pay for your grocery items) People in the eighteen-to-twenty-four age bracket spend nearly what percentage of their monthly income just on debt repayment? - Answers 30% When is the best time to start learning money management principles? - Answers Throughout your lifetime, to be ready to implement when you have money to manage Which is the main reason some people choose to file a chapter 13 bankruptcy? - Answers It is a more conservative approach to bankruptcy Excessive debt does not contribute to which of the following? - Answers Self-sufficiency Which of the following best describes sound financial literacy? - Answers Gaining knowledge about how to handle your finances According to the lesson, the average American household has accumulated how much credit card debt? - Answers Between 15,000 and 16,000 Define debt - Answers The state of owing money to someone or something Who should be most responsible for your finances - Answers You Which of the following in not a key component of financial literacy? - Answers Paying the minimum amount due on your credit cards each month Which of the following is not an advantage of debit cards? - Answers They will help you establish credit for future big-ticket items Sam needs to go to the bookstore to purchase a book for his financial literacy course. The cost of the book is $45. In which two columns would the $45 amount be entered? - Answers Payment amount and balance Which of the following is the best definition of a want? - Answers Something you would like to have but can survive without What is the proper order for making a budget? - Answers Set goals, make a plan, and follow-up If you can distinguish between you wants and your needs, financial security will _____. - Answers be much easier to achieve Which of the following is the best definition of a need? - Answers Something you must have in order to survive Consumers need to be vigilant in making sure that lenders don't have hidden fees. This is known in the contract as _______. - Answers Payment penalties Which of the following is an important consideration when applying for a student loan? - Answers All of the above (whether it is a federal or private loan, whether your personal information is secure, whether you can meet the lending requirements) The best definition of "compound interest" is which of the following? - Answers Interest that creditors add each year based on what your principal balance is What is the biggest disadvantage to investing in a certificate of deposit? - Answers Your money is not readily available without heavy penalties What is the number one reason why more than half of all Americans spend more money than they make? - Answers Credit cards What is one of the best ways to gauge whether a goal is appropriate? - Answers Make sure it is attainable Which of the following wouldn't be a disadvantage of paying with cash? - Answers Paying in cash keeps you from overspending Chris is twelve years old and has just started mowing lawns for his neighbors. For each lawn he mows, he will receive $15. He has been hired by five neighbors to mow their lawns once a week and another neighbor every other week for the same amount. How much money will Chris have earned at the end of eight weeks? - Answers 660 Sam has been saving his money to purchase a new computer. He believes he has $781.70 in his checking account, but when he uses his debit card to buy the computer, the transaction won't go through. Which of these could be a reason for this problem? - Answers All of the above (Sam had actually not saved enough money,Sam made some errors in his calculations, and he had less money in his account than he thought, Sam made some errors in his entries, and he had less money in his account than he thought.) Which of the following is a good reason for avoiding quick loans? - Answers All of the above (higher fees, higher interest rates, difficulty paying back)