Deck 11: Managing Money

Question 1

A spending plan that tracks all sources of income and expenses during a set period of time is a

A) grant.
B) budget.
C) scholarship.
D) line of credit.

Answer 1

B

Question 2

A student loan disbursement is an example of a(n)

A) fee.
B) credit.
C) expense.
D) income.

Answer 2

D

Question 3

Tuition is a type of

A) expense.
B) income.
C) credit.
D) grant.

Answer 3

A

Question 4

Porter just started college and is living in an on-campus dorm. It is the first time he's lived away from home, and he wants to make sure that he manages his money effectively so he can cover all his expenses. He learned in his College Success class that when creating a budget, it's a good idea to track your spending so that you know where your money is going. If Porter wants to get an accurate picture of his expenses, he should track his spending for at least

A) a few days.
B) a full week.
C) two full weeks.
D) a full month.

Question 5

A fixed expense is

A) a one-time expense.
B) any recurring expense.
C) an expense that costs the same amount each time you pay it.
D) an expense that costs a different amount each time you pay it.

Question 6

Which is the BEST example of a fixed expense?

A) monthly budget for rent
B) yearly budget for food expenses
C) monthly electric bill
D) weekly cost for ride-sharing service

Question 7

A variable expense is

A) a one-time expense.
B) any recurring expense.
C) an expense that costs the same amount each time you pay it.
D) an expense that costs a different amount each time you pay it.

Question 8

Which is the BEST example of a variable expense?

A) gym membership
B) streaming service subscription
C) electric bill
D) car insurance

Question 9

Which is an example of a need for college students?

A) cappuccinos
B) textbooks
C) movie tickets
D) digital streaming subscription

Question 10

Which strategy will NOT help students cut their costs?

A) participating in a ride-sharing program
B) waiting an extra week to make credit card payments
C) taking advantage of student discounts
D) shopping at thrift stores instead of department stores

Question 11

Gretchen, Paul, Faith, and Harry were all accepted at the same college, but none of them could afford to pay the full tuition on their own. The four students obtained funding through different means. Which student obtained a grant?

A) Gretchen, whose funding came from a local bank and must be repaid over time with interest
B) Paul, whose funding came from his state's government and does not need to be repaid
C) Faith, whose education is being paid by the college because of her musical talent
D) Harry, who is paying for his education by working part-time at the school

Question 12

In the context of scholarships, need refers to

A) your academic standing.
B) your past accomplishments in the arts or athletics.
C) what your family can afford to contribute toward your tuition.
D) the total cost of your tuition.

Question 13

Merit scholarships are awarded based on

A) talent.
B) financial need.
C) both talent and financial need.
D) neither talent nor financial need.

Question 14

Capital State University agreed to pay for Irene to attend their school and play lacrosse for their team. As part of their arrangement, Irene is not required to pay the school back. Which form of financial aid did Irene receive?

A) loan
B) grant
C) scholarship
D) work-study offer

Question 15

If you participate in a work-study program, it means that you

A) receive financial aid and hold down a part-time work-study job.
B) hold down a part-time work-study job but receive no other financial aid.
C) work full-time in a work-study job for one term, then go to school full-time the next term.
D) hold down a work-study job, and all your wages are automatically applied to your tuition bill.

Question 16

Which type of financial aid allows you to alternate a term of study with a term of paid work?

A) merit scholarship
B) work-study program
C) cooperative education
D) need-based scholarship

Question 17

While Gabriel was growing up, his uncle had always told him that if Gabriel got into college, his uncle would pay his tuition. Gabriel was accepted at a state college and plans to major in Chemistry. Unfortunately, his uncle came down with a serious illness last year, and the expensive health bills left him unable to fulfill his promise. Now Gabriel needs to take out a student loan but isn't sure where to go or how to do it. Which resource on campus would be the BEST place for Gabriel to find information about student loans?

A) Financial Aid Office
B) Office of Admissions
C) Chemistry Department
D) Department of Student Affairs

Question 18

In order to maintain your financial aid, you typically do NOT need to

A) finish your program or degree on time.
B) complete your courses each term.
C) earn average or better grades.
D) participate in a community service program.

Question 19

How many credit hours per term should students be enrolled in if they are receiving full-time financial aid?

A) eight
B) twelve
C) fifteen
D) eighteen

Question 20

If you are attending a four-year school, when do you need to file for financial aid?

A) every year
B) only your first year
C) your first and third years
D) your first and last years

Question 21

You do NOT need to submit your parents' tax information when completing the FAFSA if you

A) are a veteran.
B) have no dependents.
C) are at least twenty-one.
D) are in good academic standing.

Question 22

Brenda has decided to work part-time (about fifteen hours per week) at a hospital while attending a medical coding program at her local college. While working and attending school, Brenda is LEAST likely to

A) gain valuable work experience.
B) complete her educational goals on time.
C) get extra time off from work to study for midterms.
D) get better grades than classmates who do not work at all.

Question 23

Capitalization means that

A) no interest will be charged to your college loan.
B) you can choose what the interest rate will be for your loan.
C) the interest on your college loan is paid by the government.
D) the interest on your college loan is added to the money you owe.

Question 24

Which type of loan is available only to a student's parents?

A) private student loan
B) subsidized federal student loan
C) unsubsidized federal student loan
D) Parent Loan for Undergraduate Students (PLUS)

Question 25

Which organization offers private student loans?

A) bank
B) college
C) state government
D) federal government

Question 26

Which is NOT a factor taken into consideration when determining your credit score?

A) how many credit cards you have
B) whether you have a car loan
C) whether you have maintained an average or better grade point average
D) whether you have made late payments on your utility bills

Question 27

What will happen if you make only the minimum payment on your credit card bill each month?

A) It will shorten your repayment time.
B) The bank will cancel your credit card.
C) Your interest rate will go up each month.
D) You will be charged a finance fee each month.

Question 28

You CANNOT use a debit card to

A) build a credit history.
B) pay many types of bills online.
C) purchase products from a store.
D) access money in your checking account.

Question 29

Which would be the MOST secure password for your bank account?

A) Password
B) Rover99
C) 97Da#3bc!
D) AuntBetsylovesme

Question 30

A budget is necessary only for those with a substantial income.

Question 31

Making late payments on credit cards can increase your credit score.

Question 32

Research indicates that many employers run credit checks on potential new hires.

Question 33

If you take out a student loan, you will not have to pay interest.

Question 34

When applying for scholarships and grants, the amount of financial aid that you receive will depend on the cost of your academic program and what you or your family can pay as determined by the FAFSA.

Question 35

When completing the FAFSA, you should try to do it in sections rather than tackling all of it at once.

Question 36

Students who work about fifteen hours a week typically get lower grades than students who do not work at all.

Question 37

For most students, some level of borrowing to pay for college is both necessary and prudent.

Question 38

You should alert the registrar of any changes in address, even after you have finished your degree or program.

Question 39

Paying your credit card bill one day late does not result in a penalty.

Question 40

List five tips for creating a budget.

Question 41

Identify three ways in which you can cut your expenses.

Question 42

As you consider your finances, what do you think will be your biggest challenge to living on a budget (for example, buying less new music, buying fewer clothes)? How can you overcome this challenge? Include examples in your response.

Question 43

What is your spending philosophy? Easy come, easy go? A penny saved is a penny earned? Describe your approach to spending and saving money and explain why you feel this way.

Question 44

Describe the financial future that you would like for yourself two, five, and ten years from now. Outline the steps that you think you will have to take to reach your financial goals.

Question 45

What is the FAFSA?

Question 46

How are you paying for college this term? Considering what you learned about financial aid in this chapter, are you likely to do anything different when planning how to pay your tuition throughout the rest of your time in college? If so, what changes will you make and why? If you won't be making any changes, why not?

Question 47

Given the option, would you prefer to work on-campus or off-campus, and why? Include examples to support your position.

Question 48

What is the primary difference between subsidized and unsubsidized federal student loans?

Question 49

How is a debit card different from a credit card?