Title: Financial Management
Course: Question Banks

Q: Which of the following is a typical example of college-related personal expenses?
- study abroad fees
- medical emergencies
- room and board
A: room and board

Q: What was the average tuition cost of attending college at a public, four-year university in 2011–2012?
- $2,800
- $15,400
- $9,300
A: $9,300

Q: Which type of institution will have the lowest total price of college?
- a public 4-year college
- a private, nonprofit 4-year college
- a public 2-year college
A: a public 2-year college

Q: Which of the following is an example of a SMART financial goal?
- I will apply for work study.
- I will pay for college.
- I will borrow no more than $5,000 for tuition in loans.
A: I will borrow no more than $5,000 for tuition in loans.

Q: Which is the most effective financial goal for college?
- I will pay off all of my student loans.
- I will get an internship to advance my career.
- I will obtain a part-time job by September to pay for my books.
A: I will obtain a part-time job by September to pay for my books.

Q: Which is the most effective financial goal for college?
- I will fill out grant applications.
- I will talk to a career counselor about my future job prospects.
- I will create a budget for next month and keep at least $200 for savings.
A: I will create a budget for next month and keep at least $200 for savings.

Q: There are several different options for student income in college. Only ________ need to be paid back eventually.
- scholarships
- grants
- loans
A: loans

Q: Which of the following describes the difference between subsidized and unsubsidized loans?
- Subsidized loans are private loans. Unsubsidized loans are federal loans.
- Subsidized loans need to be paid back. Unsubsidized loans do not.
- Subsidized loans do not accumulate interest while a student is attending college. Unsubsidized loans do.
A: Subsidized loans do not accumulate interest while a student is attending college. Unsubsidized loans do.

Q: Which of the following is true about the FAFSA?
- You only need to fill out the FAFSA once.
- You will probably be ineligible if you (and your parents) earn above the poverty line.
- You will need your (and your parents’) tax forms and other documents to fill it out.
A: You will need your (and your parents’) tax forms and other documents to fill it out.

Q: What can strongly set you apart from other scholarship applicants?
- your age, gender, and race
- your GPA
- your essay
A: your essay

Q: Which of the following types of student jobs might be provided as part of a financial aid package?
- summer job
- internship
- work-study
A: work-study

Q: What is part-time work given to students as part of a financial aid package known as?
- internship
- on-campus job
- work-study
A: work-study

Q: If you are concerned about not having enough time to work during school, you may find ________ to be the best solution.
- a work-study program
- an on-campus job
- a summer job
A: a summer job

Q: Which job typically provides free room and board for college students?
- an on-campus job
- a work-study
- a resident advisor
A: a resident advisor

Q: Which is an advantage of working while in college?
- improved dedication to schoolwork
- increased productivity
- opportunity for networking
A: opportunity for networking

Q: What is a disadvantage of working while in college?
- commitment issues
- budgeting issues
- time-management issues
A: time-management issues

Q: Carlos needed a part-time job and asked around about where he should look. After checking some searching online, he finally approached a/an ________ and found good possibilities around the community on their “Help Wanted” bulletin board listings.
- academic advisor
- warehouse
- coffee shop
A: coffee shop

Q: If you want to learn about prospective employers and get your résumé out to lots of people at the same time, you should visit a
- career center.
- community center website.
- career fair.
A: career fair.

Q: Where should you go to practice interviewing for potential jobs?
- online career-building websites
- a career fair
- a career center
A: a career center

Q: Scholarships
- need to be repaid in full after the lending period expires.
- are only available to minorities or those with extreme financial need.
- do not need to be repaid.
A: do not need to be repaid.

Q: Why do many credit card companies target college students?
- Credit card companies know college students will accrue debt.
- Credit card companies know college students need loans.
- Students typically have clean credit records.
A: Students typically have clean credit records.

Q: Jim has two credit cards he uses to have enough money for all of his recreational activities. If he joins his friends on a camping trip this weekend, he’ll need to borrow more money than he has in his account. What’s the risk in doing this?
- Jim may need to ask his friends or family for money to get home at the end of the trip.
- If he can’t pay off the bill by the end of the month, he’ll risk losing his financial aid package.
- If he can’t pay the bill by the end of the month, his total debt will gain interest rapidly.
A: If he can’t pay the bill by the end of the month, his total debt will gain interest rapidly.

Q: Leo wants to impress his girlfriend with the perfect date, but he’s worried he won’t have enough money to make it happen as planned. He decides to charge the expenses to his credit card and pay it off later. What will happen if he can’t pay it all by the end of the month?
- He will have to close his credit card.
- His credit score will go up.
- He will owe more money than what he borrowed.
A: He will owe more money than what he borrowed.

Q: How does creating a budget help college students save money?
- It helps students to decide whether they should attend a different institution with lower tuition fees.
- It allows students to determine whether they should look for more work or not.
- It shows students where their money is going and how much money they should allot for different expenses.
A: It shows students where their money is going and how much money they should allot for different expenses.

Q: Cutting down on meal costs and ________ costs are relatively simple ways to save money.
- tuition
- housing
- transportation
A: transportation

Q: Which of the following strategies might help college students cut costs and save money?
- eat out more to save on grocery bills
- drive to class each day
- buy used textbooks
A: buy used textbooks

Q: Budgets should include
- all expenses that are considered “needs.”
- all expenses that would be considered “wants.”
- all of your spending habits.
A: all of your spending habits.

Q: Successful budgets
- are calculated to the penny and have no leniency.
- should focus on creating savings.
- have a timeline, like a month or a year.
A: have a timeline, like a month or a year.

Q: Which of the following would be considered a benefit of budgeting?
- Budgets may be restrictive.
- Budgeting saves time and energy.
- Budgeting provides a realistic view of personal finances.
A: Budgeting provides a realistic view of personal finances.

Q: Which of the following would be considered a con of budgeting?
- Only a portion of people are able to create a budget.
- Budgets are inflexible: they cannot be adjusted once they are created.
- It takes time to see the results of budgeting.
A: It takes time to see the results of budgeting.

Q: What is an example of a long-term goal that Sasha might set while budgeting?
- Save for a trip at the end of the year.
- Always have at least $50 for unexpected expenses each month.
- Pay off college loans in full.
A: Pay off college loans in full.

Q: Saving up money to buy a car is an example of a
- budgeting mistake.
- short-term budgeting goal.
- long-term budgeting goal.
A: long-term budgeting goal.

Q: Once you’ve established your budgeting goals, your next step should be to make a list of
- all the expenses that don’t happen each month (but happen sometimes).
- all your upcoming activities and events that will need extra money.
- all the things you spend money on and save money for.
A: all the things you spend money on and save money for.

Q: At least how much money do experts recommend that you keep in an emergency fund?
- 6–9 months’ worth of income
- 9–12 months’ worth of income
- 3–6 months’ worth of income
A: 3–6 months’ worth of income

Q: If you are opening a new credit account as a college student, it’s good to look for one that offers
- high interest rates.
- an unlimited withdrawal ceiling.
- error forgiveness.
A: error forgiveness.

Q: Students should try to avoid credit cards with
- low interest rates.
- rewards offered for good grades.
- high APRs.
A: high APRs.

Q: Which is a positive aspect of owning a credit card?
- It can enable someone to spend more money than what they have available in the checking account.
- It accumulates interest when not paid in full.
- It can enable someone to make large payments for things like tuition.
A: It can enable someone to make large payments for things like tuition.

Q: What is generally considered to be a good credit score?
- 300–450
- 600–750
- 680–850
A: 680–850

Q: Which of the following people will be most likely to require a copy of your credit report?
- possible employer
- academic advisor
- potential landlord
A: potential landlord

Q: Maya is concerned about her credit problems and is worried about the debt she’s accumulated throughout college. Which of the following strategies is the most advisable for Maya?
- automatically apply for bankruptcy
- immediately consolidate her loans
- look for a reputable credit counselor
A: look for a reputable credit counselor