8
27) Credit scores are based on all of the following EXCEPT
A) current debt.
B) total credit available.
C) marital status.
D) credit history.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
28) Why is a low credit score problematic?
A) It leads to penalties.
B) It makes it more difficult to borrow.
C) It lowers your interest rate.
D) It raises your credit limit.
Skill: Applying
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
29) To check your credit report, start by contacting the
A) Interstate Commerce Commission.
B) Department of the Treasury.
C) Department of Commerce.
D) Federal Trade Commission.
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
30) Which of the following rules was included in the 2009 CARD Act, designed to regulate the
credit card industry?
A) Interest rates on credit cards cannot be raised.
B) You must be at least 21 years old to get a credit card.
C) Students can receive gifts when they apply for credit cards.
D) Colleges must disclose marketing contracts with credit card companies.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
9
31) Recent changes in credit card rules can be obtained from the
A) Consumer Financial Protection Bureau.
B) Banking and Commerce Committee.
C) Federal Trade Commission.
D) U.S. Chamber of Commerce.
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
32) Approximately how many Americans were affected by identity theft in 2013?
A) 13,000
B) 130,000
C) 1.3 million
D) 13 million
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
33) What was the financial loss to Americans from identity theft in 2013?
A) $3.8 million
B) $48 million
C) $18 billion
D) $28 billion
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
34) If your ATM or debit card is stolen and used, you will be liable for no more than $50 in
charges if you report the theft within how many business days?
A) 2
B) 3
C) 4
D) 5
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
10
35) If your ATM or debit card is stolen and used, you be responsible for all charges put on the
card if you fail to report the theft within
A) 30 days.
B) 60 days.
C) 90 days.
D) 120 days.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
36) What is phishing?
A) an email scam used to seek personal financial information
B) a computer virus
C) a phony credit card application
D) a fraudulent credit report offer
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
37) Why is identity theft more commonly experienced by users of social media?
A) Social media websites are hacked often.
B) Social media companies engage in fraud.
C) Social media users often share private information online.
D) Social media sites download computer viruses onto personal computers.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
38) All of the following actions can help protect against identity theft EXCEPT
A) shredding credit card statements to remove account numbers.
B) password locking your smart phone and PC.
C) not responding to phishing schemes.
D) not getting a smart card.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
11
39) Financial status has no relation to an individual’s health.
Skill: Understanding
Section: The Link Between Health and Wealth
Learning Outcome: 1a.1
40) To reduce college costs, more than 40 percent of students live at home or with a relative.
Skill: Remembering
Section: Financial Struggles in College
Learning Outcome: 1a.2
41) The median income of high school graduates is only a little over half that of people who hold
a bachelor‘s degree.
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
42) A budget is a record of spending over a long period of time.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
43) A budget deficit is the money left over for savings after expenses have been paid.
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
44) One purpose of budgeting is to help you save more than you spend.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
12
45) Fixed expenses are those that don‘t change much in a short period of time, such as car loan
payments or rent.
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
46) Purchasing health insurance should be low on your financial priority list.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
47) With credit cards, the credit limit and APR are the same.
Skill: Remembering
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
48) Individuals cannot find out their credit score.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
49) Updating computer software can help guard against identity theft.
Skill: Understanding
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
50) Explain how the following countries demonstrate the relationship between health and
economic prosperity: Norway, France, Russia, India.
Skill: Analyzing
Section: The Link Between Health and Wealth
Learning Outcome: 1a.1
13
51) Identify at least two advantages and two disadvantages of working your way through college.
Skill: Evaluating
Section: Financial Struggles in College
Learning Outcome: 1a.2
52) Identify five reasons why federal student loans are generally preferable to private loans.
Skill: Evaluating
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
14
53) Why should people be cautious in their use of credit cards?
Skill: Analyzing
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
54) Why is identity theft such a problem today?
Skill: Analyzing
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3
55) List at least three things you should do if you suspect that your identity has been stolen.
Skill: Applying
Section: Actions to Improve Your Financial Health
Learning Outcome: 1a.3