Question

test 2d sep. 18, 2025 personal finance test name eduardo benítez per _
t f 1. males tend to have their bills paid on time, spend less than their income, and rarely have late fees.
t f 2. there is no difference between credit cards and debt cards.
_ 3. a plan to manage your money by monitoring your income and tracking your expenses is called a:
a) budget b) decision making chart c) limited resources
_ 4. a valuable item which is offered to repay a loan in case the borrower does not finish the payments is called:
a) return b) collateral c) limited resource
_ 5. riskier investments are chosen because they have a potential for:
a) a low rate of return b) high rate of return c) no rate of return because people are not gamblers
_ 6. which is not used to determine if a person should get credit:
a) capacity b) collateral c) character d) clarity
_ 7. if you have a best credit score then you should get:
a) arrested b) high interest rate loans c) low interest loan rate loans
_ 8. which number would be considered a very good credit score:
a) 600 b) 800 c) 300
_ 9. which does not effect your credit score:
a) how much you owe other people b) your payment history
c) your age and sex
_ 10. why might a person want to consider making a budget:
a) to expand their income b) to eliminate their wants and desires
c) to ensure that money is available for all necessities
_ 11. which of the following goals are a reason for a person to establish a budget:
a) avoiding hard decision making b) ensuring they are able to get everything they want
c) getting the most they can with their limited resources
_ 12. what are two quick ways to get a loan but you are expected to pay it back quickly with lots of interest: (select two)
a) bank loan b) selling stock short c) pay day loan d) title pawn loan
_ 13. banks do which of the following:
a) use people’s deposited money to make higher interest loans to other people
b) hold every bit of the money given to it to make sure another depression does not occur
c) give back all the bank’s profits from holding people’s savings back to the depositors
_ 14. which of the following is an alternative to a bank but it usually has access to less money to make loans:
a) labor union b) realtor agency c) credit union
_ 15. a chart with possible choices and comparison criteria can be useful when:
a) choosing investments b) choosing between decisions c) choosing a career d) all the above
_ 16. which is not used to determine your credit score:
a) length of payment history b) comprehensive insurance c) amount of debt
_ 17. the current us income tax system is described as being:
a) regressive b) proportional c) progressive

Explanation:

1. There is no gender - based generalization for bill - paying habits.
2. Credit cards and debit cards have different functions in terms of borrowing and spending.
3. A budget is a plan for managing money by monitoring income and expenses.
4. Collateral is an item offered to repay a loan if the borrower defaults.
5. Riskier investments have the potential for a high rate of return.
6. Clarity is not a factor in credit determination; capacity, collateral, and character are.
7. A good credit score leads to low - interest rate loans.
8. A credit score of 800 is considered very good.
9. Age and sex do not affect credit scores; debt and payment history do.
10. A budget is made to ensure money is available for necessities.
11. The goal of a budget is to get the most with limited resources.
12. Payday loans and title pawn loans are high - interest, quick - access loans.
13. Banks use deposited money to make higher - interest loans.
14. Credit unions are an alternative to banks with less lending capacity.
15. A decision - making chart is useful in various choices including investments, decisions, and career.
16. Comprehensive insurance is not used to determine credit scores.
17. The US income tax system is progressive.

Answer:

1. F
2. F
3. a) budget
4. b) Collateral
5. b) high rate of return
6. d) Clarity
7. c) low interest loan rate loans
8. b) 800
9. c) your age and sex
10. c) to ensure that money is available for all necessities
11. c) getting the most they can with their limited resources
12. c) pay day loan, d) title pawn loan
13. a) use people’s deposited money to make higher interest loans to other people
14. c) credit union
15. d) all the above
16. b) Comprehensive Insurance
17. c) progressive