When it comes to the credit you have available, maxing out your cards is fine. You earned it so you should use it.
True,False~answer
The more accounts you open, the more it will show you can handle credit.
True,False~answer
Using a credit card is a great way to build credit.
True~answer,False
How long do you plan on keeping your money in the account?
a. It depends on my bills! I’d like to take a little out here and there,b. Within the next six months,c. More than 6 months but less than a year,d. More than one year~answer
How much money do you have to start?
a. At least $25,b. $0,c. $199 to $250,d. More than $500~answer
Are you expecting any major expenses that would require you to withdraw money in the near future?
a. Car repair,b. Upcoming home renovation,c. Other large purchase/expected expense,d. I have no major expenses coming up~answer
Best answer, how much money is recommended you have saved for retirement?
a. $1 million.,b. $5 million.,c. Each year, 70 to 80 percent of my annual income earned prior to retirement.~answer,d. Nothing. I’ll live off my Social Security checks.
What age can you start accessing your retirement savings without penalty?
a. 59½~answer,b. 60,c. Whenever I want to make a withdrawal.,d. 65
How much will Medicare cover your healthcare needs in retirement?
a. Medicare covers approximately 70% of healthcare and prescription drug costs. .~answer,b. Medicare will cover all of my healthcare needs once I enroll at the age of 65.,c. Medicare only covers prescription drugs.,d. Medicare covers approximately 90% of healthcare but not prescription drug costs.
Best answer, what age should you retire?
a. When I qualify for Social Security.,b. When my company tells me it’s time to leave.,c. 65,d. The answer is different for every person.~answer
What steps can I take to begin retirement planning?
a. Ask my human resources director for information about company benefits that pertain to retirement saving.,b. Contact a financial advisor to review all my financial assets and construct a retirement savings plan based on my retirement goals.,c. Develop a budget to help determine my anticipated living expenses once I stop earning a regular paycheck.,d. All of the above.~answer
1. Do you have a personal emergency fund?
Yes,No~answer
2. Are you saving for retirement (and saving enough)?
Yes,No~answer
3. Are you investing in your business simply because it needs a cash infusion? And not just to get it started at launch?
Yes,No~answer
4. Does your business have its own bank accounts and/or credit card?
Yes,No~answer
5. Is your business profitable?
Yes,No~answer
6. Is your business registered as a limited liability partnership (LLP), limited liability corporation (LLC) or S corporation?
Yes,No~answer
1. Have you made a succession plan?
Yes - I have a plan and my successor or buyer in place. ~answer,No - I don’t know whether I want to sell my business or pass it on to a successor.
2. Have you identified your transition team?
Yes - I alerted my accountant, lawyer and an M&A professional about my transition. ~answer,No - I’ve just started thinking about a transition. I could use some help with this process.
3. Are you willing to sell your business?
Yes - I am willing to sell my business. ~answer,No - I want my business to stay in the family or with my employees. Or - I’m not sure yet.
4. Have you prepared your business for a possible sale — created marketing materials or had an M&A professional review your books?
Yes - My team has already started marketing my business. ~answer,No - I won’t need to do this, since I have a successor or buyer in place. Or – I haven’t yet started the process.
1. How do you define credit?
A. Free money,B. Money lenders will let you borrow~answer,C. Money you currently owe lenders,D. The total amount of money you’ve borrowed in your lifetime
2. Which of the following is a common type of credit?
A. Inverted credit,B. Freestanding credit,C. Revolving credit ~answer,D. Invisible credit
3. What’s the best way to establish good credit?
A. Get a high-paying job,B. Pay off your student loans,C. Avoid borrowing money unless you really need it ,D. Start with a secured credit card ~answer
4. Which of the following factors is most likely to affect your credit score?
A. Your annual salary,B. Your credit history ~answer,C. Your net worth,D. Your age
5. Who can ask to see your credit report?
A. A bank,B. An employer,C. A landlord,D. All of the above ~answer
6. Which of the following is most likely to be considered an excellent credit score?
A. 100,B. 400,C. 800~answer,D. 1600
1. Why are all credit cards the same size?
A. To meet international standards. ~answer,B. To fit into wallets and purses. ,C. Tradition. The first card was designed based on the New York State driver’s license.,D. They’re not. Cards vary in size.
2. What is a credit card’s CVV number?
A. The first four digits of the account number.,B. The separate three or four digit number on the back or front of the card. ~answer,C. The number of years the card has been in existence.,D. The last four digits of the account number.
3. What does the stripe on the back of the card do?
A. It holds data for payment terminals to read during transactions.,B. It contains the cardholder’s account information.,C. It holds the card’s merchant ID.,D. All the above. ~answer
4. Why are new credit cards using the chip?
A. The chip helps enable contactless payments.,B. Banks have adopted chips as an industry standard.,C. Chip cards are designed to be less susceptible to fraud.,D. All of the above. ~answer
5. Why do most credit cards have raised numbers?
A. To assist the visually impaired.,B. So the numbers are easier to read.,C. So they can be run through a manual imprinter. ~answer,D. Tradition. Raised letters were part of the original patent.
6. What is the hologram on some cards for?
A. It makes the card look good.,B. Customers pay extra for them.,C. To prevent forgery. ~answer,D. It shows the card has a high credit limit.
7. Do you still have to sign the back of your credit card?
A. Yes. ~answer,B. No, because it exposes you to fraud.,C. You should write “Ask for ID” instead.,D. New cards don’t require a signature.
8. What do the first six numbers of your credit card account number show?
A. Your credit limit.,B. The card’s issuer, including their industry (airlines, financial institutions, etc.). ~answer,C. How old the card is.,D. None of the above.
1. What is a loan?
A. A business contract between a borrower and a bank~answer,B. A bonus payment that increases your income,C. A withdrawal from a checking account to pay expenses
2. What is interest?
A. An annual fee to use a credit card ,B. A penalty for late payments on a loan,C. What a lender charges for lending you money ~answer
3. What is a variable interest rate?
A. An interest rate that might change, according to the terms of your contract ~answer,B. An interest rate that is calculated based on how much you borrow,C. An agreement that requires you to pay interest some months but not others
4. What is a fixed interest rate?
A. An interest rate that increases over time by a set amount,B. An interest rate that stays the same throughout the loan ~answer,C. An interest rate that is tied to another indicator, such as the prime interest rate
5. Which is an example of open-end credit?
A. Home mortgage,B. Auto loan,C. Credit card ~answer
6. Which is an example of closed-end credit?
A. Home mortgage ~answer,B. Credit card,C. Home equity line of credit
7. What is a secured credit card?
A. A credit card for high-income borrowers,B. A credit card that requires a cash deposit to open an account ~answer,C. A credit card that uses the value of your car as collateral
Test question two correct answers
Incorrect answer ,First correct answer~answer,Second correct answer~answer
What is a good debt-to-income ratio?
A. 20 percent or higher,B. 36 percent or lower~answer,C. I don’t know what debt-to-income ratio means
How much of your income should you save for retirement each month?
A. It depends on your age,B. 15 percent~answer,C. $500
A monthly budget is:
A. Unnecessary,B. Annoying,C. Essential~answer
Which of the following is considered the best credit score?
A. 575,B. 650,C. 700~answer
How much should you have in your emergency fund savings for easy access?
A. $3,000,B. At least 3 months’ cost of living ~answer,C. At least 3 months’ salary
When should you invest in life insurance?
A. Now ~answer,B. When you get married or become a parent,C. At the age of 40
You’ve been pre-approved for a home loan. Congratulations! What does that big number tell you?
A. It’s the amount I can afford to spend on a home.,B. It’s the amount the bank will lend me for a home. ~answer
What should you look for in a real estate agent?
A. Good reviews/referrals.,B. Strong knowledge of the area and market.,C. A sense of connection and trustworthiness.,D. All of the above.~answer
What are you typically paying with your monthly mortgage payments?
Principal and interest on my home loan.,Principal and interest on my home loan, plus real estate taxes.,Principal and interest on my home loan, plus insurance.,Principal and interest on my home loan, plus taxes and insurance. ~answer
What other expenses will you need to factor in each month aside from your mortgage?
A. There won’t be many changes beyond switching from my rent payment to a mortgage payment.,B. I’m factoring in yard maintenance, unexpected repair costs and more in addition to my monthly mortgage payment. ~answer
How much can you expect to pay in closing costs?
A. Nothing,B. Between 2-5% ~answer,C. Between 7-10%
How long do you expect the entire home-buying process to take?
A. A couple of weeks.,B. About a month.,C. Two months, minimum. ~answer