Money Matters 6 Weeks Test

1.

1 point

Name three things you should never use to save for college.

loans, grants and your parents money

insurance, savings bonds, and prepaid tuition

second job, allowance and birthday money

savings accounts, mutual funds, piggy banks

2.

1 point

What should you do with your retirement account when you leave a company?

Apply it towards your home mortgage

Cash it out and spend it on awesome stuff

Roll it over to an IRA by direct transfer

Bring it home with you and put it in an IRA next chance you get

3.

1 point

It is a good idea to borrow money from your retirement account.

True

False

4.

1 point

80 percent of millionaires are _______________.

won the lottery

wealthy because they were born that way

first generation rich

related to Dave Ramsey

5.

1 point

The debt snowball method of paying off debt says that you should

pay off all loans except the house starting with the smallest

you should pay minimum payments on all debt except the smallest

you should put all extra money you have towards the smallest debt

all of the above

6.

1 point

Baby step one is to pay off all debt except the house using the debt snowball.

True

False

7.

1 point

The fastest growing group of bankruptcy filers consist of people

under 25 years old.

that have IRAs.

that eat at McDonalds.

with children.

8.

1 point

You need a credit card to make purchases online or over the phone.

True

False

9.

1 point

_____ percent of Americans are living paycheck to paycheck.

60

10

100

70

10.

1 point

Teens are a huge target of credit card companies.

True

False

11.

1 point

A new car loses 70 percent of its value in the first ______ years.

five

four

six

three

12.

1 point

The car lease is the most expensive way to buy a vehicle.

True

False

13.

1 point

Car payments are a way of life and you will always have one.

True

False

14.

1 point

You should invest ______ of your household income into your retirement account.

all of your money

50 percent

10 dollars per week

15 percent

15.

1 point

Why are teens a huge target of credit card companies?

most adults already have a credit card

they spend more money than adults

they say yes more often than adults

they buy a lot of pizza

16.

1 point

Everyone with an earned income is eligible for an IRA.

True

False

17.

1 point

A new way of looking at things is the definition of __________.

Paradigm

Debt

Gazelle

Mortgage

18.

1 point

The drive free method says you should

buy the nicest car you can and upgrade after you pay it off

make car payments your whole life

take the bus

buy a cheap car and save up to pay cash for your next car

19.

1 point

The ROTH IRA is

an after tax IRA that grows tax-free.

the best way to save for college.

not good for requirement accounts.

illegal in Texas.

20.

1 point

IRA stands for ______________.

Individual Retirement Agreement

Internet Retirement Account

Inception Run Apple

Independent Retirement Account