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Fp/11 Final

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FP101 Final Exam

1. When you have serious credit card debt, where is the best place to seek help? a. From a debt consolidation company b. From an independent consumer credit counseling agency, such as AICCCA or the National Foundation for Credit Counseling c. From a credit deferral service d. From a private loan organization, such as a bank or credit union.
2. Which of the following is considered secured debt? a. Student Loan b. Credit card c. Auto loan d. Debt consolidation loan

3. Students should aim to keep their total student loan debt to a. less than the salary they are likely to make their first year out of school b. less than 200% of their first-year salary c. about the total cost of 4 years of their education d. less than 150% of their first-year salary

4. Which of the following is considered a very good credit score? a. 500-559 b. 600-659 c. 700-759 d. 760-859

5. What is a credit utilization rate? a. How many open credit accounts you have b. The percentage of all your reported credit accounts that are open accounts c. Your total outstanding balance as a percentage of total credit limit d. How often you use credit to make purchases 6. What is the main disadvantage of using only a debit card? a. Debit card purchases are not reported to credit reporting agencies and therefore will not help you build your credit score. b. Not all stores accept debit cards. c. You may earn better rewards with a credit card. d. Credit cards offer fewer protections if your card is lost or stolen.

7. Which of the following is not an effective way to think about money? a. Live below your means but within your needs. b. Only purchase needs, not wants. c. Financial freedom requires making a lot of money.

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