AnswersOK-Personal Financial Literacy S1 – EDGNTY-83861 26-27Unit Test

Unit Test — Unit test Answers

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1
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Which action is an example of a service provided by an organization receiving charitable donations?

A
maintaining a public broadcasting radio station
B
renting booths at an art show on privately owned fairgrounds
C
training a competitive dance troupe within a teacher-owned studio
D
hosting children’s parties at a paint-your-own-pottery franchise
2
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Government regulations on credit aim to

A
ensure lenders are repaid.
B
help borrowers pay on time.
C
support those borrowing credit.
D
educate lenders about consumers.
3

What do borrowers use to secure a mortgage loan? Check all that apply.

A
a credit card
B
a down payment
C
a house
D
land
E
a vehicle
4

What can be researched about a nonprofit organization through a regulatory agency?

A
the current number of active volunteers
B
the schedule for distributing profits to owners
C
the calendar of upcoming organizational events
D
the level of compliance to nonprofit status regulations
5

Interest paid on a loan is calculated as a percentage of the

A
principal.
B
amount owed.
C
compounded principal.
D
collateral.
6

Why do some lenders require borrowers to secure credit?

A
to prevent defaults
B
to guarantee full repayment
C
to avoid any losses
D
to reduce risk
7

Which activity does the IRS allow nonprofit organizations to engage in?

A
advertising tax deductions for donations
B
compensating business owners based on profits
C
filing the same tax forms as for-profit organizations
D
collecting a profit as a means to generate income
8

Read the quote from philanthropic businessperson Ewing Kauffman.We cannot finance everybody who wants to get into business, but we have the capability of guiding them to the point where they can get seed money.—From Philanthropy Roundtable

A
money for startup companies
B
empty office space to expanding companies
C
electronic components for updating manufacturing systems
D
expertise to develop business plans to include in bank loan applications
9

Aria has a credit card that gives a 5% discount on every purchase and free shipping when used online. The annual percentage rate on the credit card is 18%. Aria wants to buy a doghouse that costs $580. Which statement about the cost of the doghouse is true?

A
If Aria uses the credit card and pays the full balance during the billing cycle, she will spend $2.42 less than paying cash for the doghouse.
B
If Aria uses the credit card and pays the full balance during the billing cycle, she will spend $8.70 less than paying cash for the doghouse.
C
If Aria uses the credit card and pays the full balance during the billing cycle, she will spend $29.00 less than paying cash for the doghouse.
D
If Aria uses the credit card and pays the full balance during the billing cycle, she will spend $104.04 less than paying cash for the doghouse.
10

Read the scenario.Raoul has just been promoted to a supervisor’s position, which is a steady job. He likes to enjoy life, take vacations, and change things up every now and then. That’s why he will not have a lot of extra money to spend on repairs and maintenance on his car.

A
buy a used car.
B
lease a used car.
C
buy a new car.
D
lease a new car.
11

Quincy wanted his credit report. Which list could Quincy have obtained?

A
previous address, current address, bankruptcy, car loan payment history
B
current address, monthly income, car loan payment history, date of birth
C
previous address, current address, schools attended, bankruptcy
D
current address, monthly income, car loan payment history, schools attended
12

Fido wants to buy a new car. He will need to get a car loan. Fido decides to wait for a few months until his credit history improves. Which explains whether Fido is making a sensible decision?

A
Fido’s decision is sensible because the selling price of the car should be less in a few months.
B
Fido’s decision is sensible because the cost of the car loan should be less if his credit history improves.
C
Fido’s decision is not sensible because he needs the car right away.
D
Fido’s decision is not sensible because it does not matter if he buys the car now or in a few months.
13

Simon used a credit card to buy a skateboard. Which statement is true about his method of payment?

A
Simon paid cash at the store.
B
Simon used money directly from his bank account.
C
Simon will receive the bill later.
D
Simon made the purchase with money he saved.
14

Kanya has a credit card that gives a 6% discount on every purchase and free shipping when used online. The annual percentage rate on the credit card is 12%. Kanya wants to buy a laptop that costs $420. Which statement about the cost of the laptop is true?

A
If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $25.20 more than paying cash for the laptop.
B
If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $50.40 more than paying cash for the laptop.
C
If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $50.40 less than paying cash for the laptop.
D
If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $25.20 less than paying cash for the laptop.
15

Sara is 16 years old and would like to open a bank account. What will she need in addition to her parent or guardian? Select four answers.

A
government-issued ID or birth certificate
B
high school diploma
C
money to start the account
D
social security number or immigration form
E
proof of address
16

Caitlyn has a credit card with a spending limit of $1500 and an APR (annual percentage rate) of 18%. During the first month, Caitlyn charged $375 and paid $250 of that in her billing cycle. Which expression will find the amount of interest Caitlyn will be charged after the first month?

A
(0.18) (250 dollars)
Option A
B
(0.015) (375 dollars)
Option B
C
(0.18) (375 dollars)
Option C
D
(0.015) (125 dollars)
Option D
17

Paul wrote a check to the dentist for $345.69. He’ll use the check register to record his transaction. What will be his new balance?

Question illustration
A
$704.73
B
$720.62
C
$1,233.58
D
$1,579.27
18

Vera has a June credit card balance of $476.09. Her payment due date is June 27th, with a grace period of 5 days. If her payment is late, the credit card company charges a $30 late fee. Vera wants to pay the full amount to have a zero balance. How much should she pay if her online payment is processed on July 6th?$

Answer not available
19

What is easy-access credit?

A
credit that is to be repaid in full by a specific date
B
a loan given for a short period of time that is not dependent on credit history
C
the amount of money borrowed excluding accrued interest
D
an amount of time during which a loan can be repaid without interest
20

Which of these is the best reason for Nina to monitor her bank account statements online or on her cell phone app?

A
to know when her bills are due
B
to determine the exact date she can retire
C
to ensure she's paying her fair share in taxes
D
to know how much money she has for budgeting

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