Question 1

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

Accepted Answer

A budget is a financial plan that tracks all sources of income and expenses over a specific period, helping individuals or organizations manage their money effectively.

Question 2

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

Accepted Answer

D

Question 3

Tuition is a type of

Accepted Answer

Tuition is considered an expense because it is the cost associated with receiving education or instruction, typically paid to institutions like colleges or universities.

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

Accepted Answer

Tracking spending for a full month provides a comprehensive view of all expenses, including those that may not occur weekly, allowing for a more accurate and complete budget.

Question 5

A fixed expense is

Accepted Answer

Fixed expenses are costs that do not fluctuate with changes in production level or sales volume. They are consistent in amount each period, such as rent or a monthly subscription.

Question 6

Which is the BEST example of a fixed expense?

Accepted Answer

Fixed expenses are costs that do not change from period to period or that change very little. Monthly rent is a classic example of a fixed expense because it remains constant each month, making it predictable and stable compared to variable expenses like electric bills or food costs, which can fluctuate.

Question 7

A variable expense is

Accepted Answer

Variable expenses are costs that can vary in amount from period to period, unlike fixed expenses which remain constant. Examples include utility bills, grocery expenses, and fuel costs, which can fluctuate based on usage or market prices.

Question 8

Which is the BEST example of a variable expense?

Accepted Answer

Electric bills vary from month to month based on usage, making them a variable expense. Gym memberships, streaming service subscriptions, and car insurance typically have fixed monthly or annual costs.

Question 9

Which is an example of a need for college students?

Accepted Answer

Textbooks are a necessity for college students as they provide the required knowledge and information for their studies.

Question 10

Which strategy will NOT help students cut their costs?

Accepted Answer

Waiting an extra week to make credit card payments will not help students cut costs; instead, it may lead to late fees and higher interest charges, increasing their expenses.

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?

Accepted Answer

Paul's funding, which came from his state's government and does not need to be repaid, fits the definition of a grant. Grants are typically awarded based on various criteria and do not require repayment.

Question 12

In the context of scholarships, need refers to

Accepted Answer

Need in the context of scholarships refers to the financial ability of a student or their family to contribute towards tuition, highlighting the financial assistance required.

Question 13

Merit scholarships are awarded based on

Accepted Answer

Merit scholarships are awarded based on talent or academic achievement, not on 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?

Accepted Answer

Irene received a scholarship, which is a form of financial aid that does not need to be repaid and is often awarded based on merit, such as athletic ability.

Question 15

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

Accepted Answer

Work-study programs are a form of financial aid where students are given part-time employment to help pay for their education expenses. This means they receive financial aid and work part-time.

Question 16

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

Accepted Answer

Cooperative education programs are designed to allow students to alternate between periods of academic study and periods of paid work experience in their field of study, providing both financial support and practical experience.

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?

Accepted Answer

The Financial Aid Office is the best resource for information about student loans, as they specialize in helping students understand and apply for financial aid, including loans, grants, and scholarships.

Question 18

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

Accepted Answer

Most financial aid requirements focus on academic performance and progress, such as completing courses and maintaining certain grades, rather than mandating participation in community service programs.

Question 19

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

Accepted Answer

Most institutions consider students to be full-time for financial aid purposes if they are enrolled in at least twelve credit hours per term.

Question 20

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

Accepted Answer

You need to file for financial aid every year you are attending a four-year school to continue receiving financial aid. Financial situations can change, and schools need up-to-date information to determine your eligibility.

Quiz 11: Managing Money