Chapter 8:

Question 1

What is having financial security and freedom for the present and the future, and being protected form unexpected financial surprises?

Answer 1

financial wellness

Question 2

What is the set of skills nadk nowledge hat allow an individual to make informed and effective decisions when managing money?

Answer 2

financial literacy

Question 3

What are the five competencies to be finacanically literate?

Answer 3

• Earning
• Saving and Investing
• Spending
• Borrowing
• Protecting

Question 4

What is the purpose of budgeting?

Answer 4

to manage your earning and spending

Question 5

What does FAFSA stand for?

Answer 5

• Free
• Application
• Federal
• Student
• Aid

Question 6

What can be described as a financial aid that does not have to be paid back?

Answer 6

grants

Question 7

What can be described as borrowed money for college that must be paid back with interest?

Answer 7

loans

Question 8

What can be described as a work program on campus throug which you earn money to help pay for school?

Answer 8

work study

Question 9

What can be described as a loan that allows students and their parents to borrow money to pay for education (is made through a loan program administered by the federal government)?

Answer 9

federal student loan

Question 10

What can be described as a loan made by a private lender, such as bank or credit union (the terms and conditions of private student loans are set by the lender)?

Answer 10

private student loan

Question 11

What can be described as a loan for eligible undergraduat estudetns who demonstrate financial need to help cover the costs of higher education at a college or career school?

Answer 11

direct subsidized loan

Question 12

What can be described as a loan for undergraduate, graduate, and students in professional studies; the studentdoes not have to have financial need to be eligible for the loan?

Answer 12

direct unsubsidized loan

Question 13

What can be described as a loan for parents of dependent undergraduate studetns to help pay for education expenses not covered by other financial aid?

Answer 13

direct plus loan

Question 14

What can be described as a loan for graduate and professional studies studetns to help pay for educational expenses not covered by other financial aid?

Answer 14

direct graduate plus loan

Question 15

What third of students do not know their credit score or don’t know what credit score is?

Answer 15

1/3

Question 16

What is describe as interest you pay to borrow money from the credit card issuer?

Answer 16

annual percentage rate (apr)

Question 17

What is classified as a number that lenders use to help decide how likely it is that they will be repaid on time if they were to give that person a loan or a credit card?

Answer 17

credit score

Question 18

What is the credit score range?

Answer 18

300-850

Question 19

What makes up a credit score?

Answer 19

• payment history, debt, credit history, new credit, mixture of credit

Question 20

What are some benefits of a credit card?

Answer 20

• build credit score, rewards, card holder benefits, protects against cash stolen

Question 21

What kind of fee from some credit card will charges fee whenever you take cash out of an ATM machine?

Answer 21

cash advance fees

Question 22

What kind of fee is classified as an yearly fee normally between $35 and $50?

Answer 22

annual fees

Question 23

What kind of fee will charge a fee for overseas or foreign currency transactions, typically between 1 and 3 percent?

Answer 23

foreign transaction fees

Question 24

What kind of fee maybe charged to you when you have a balance and miss your minimum payment?

Answer 24

late payment fees

Question 25

What is classified as a fraudulent, spoofed e-mail that looks like
someone you do business with sent it (it will usually
include official logos and look very authentic)?

Answer 25

phishing

Question 26

What is classified as the next generation of e-mail phishing attacks (it is not spoofing an email, it is a URL that redirects you to a fraudulent URL without your knowledge)?

Answer 26

pharming