FP 101 Week 4 Quiz

Complete the Week 4 Quiz provided by your instructor.

Submit your Week 4 Quiz as a Microsoft® Word®attachment to the Assignment Files tab.

Week Four Quiz

1. Which of the following is NOT a valid reason for borrowing?
2. Purchasing a new dishwasher
3. Paying for everyday living expenses
4. Buying a car to start a new job
5. Paying for a medical emergency

2. Many think that perhaps the greatest disadvantage of using credit is
3. The temptation to overspend
4. The convenience offered instead of using cash
5. The float from using credit
6. The increase in total purchasing power

3. Which of the following electronically subtracts money from your savings or checking account to pay for goods and services?

4. A credit card
5. Closed-end credit
6. A debit card
7. A gift card

4. The periodic charge for the use of credit is
5. A line of credit
6. Interest
7. Grace period
8. Principal

5. Which of the following is an example of open-end credit?
6. An automobile loan
7. A department store credit card
8. An installment loan for purchasing furniture
9. A mortgage loan

6. If Vince charged $200 on his credit card with 18% APR and he paid his balance in full within the grace period, how much was he required to pay?
7. $18.00
8. $182.00
9. $200.00
10. $236.00

7. Tanya received a $1,000 loan from the bank for a vacation. The bank is using the simple interest formula for this one-year, 9% loan. What is her total interest?
8. $9
9. $45
10. $90
11. $1,009

8. Students should aim to keep their total student loan debt to
9. Less than the salary they are likely to make their first year out of school
10. Less than 200% of their first-year salary
11. About the total cost of 4 years of their education
12. Less than 150% of their first-year salary

9. A temporary postponement of student loan payments is
10. Reduction
11. Consolidation
12. Deferment
13. Forgiveness

10. Which of the following payment plans available for federal student loans is based on income levels?
11. Income-dependent
12. Income-based
13. Graduated
14. Standard