June 6, 2019


What percentage of new businesses are started by people under the age of 34?
Check Answer

Correct Answer: 40%
While many young people believe owning a business is something to aspire to in their later years, many businesses started every year in America are owned by people under the age of 34. Over 11% of men and nearly 7% of women aged 25-34 are attempting to start their own business. Even during the worst of the most recent recession, small business startups remained at approximately 6 million a year (roughly the same level from the preceding decade).

Which of the following demographic groups is most likely to start a small business?
Check Answer

Correct Answer: African-Americans
Research shows that African-American men and women are approximately 50% more likely than their white counterparts to start a business. African-Americans are also more likely than Hispanics or Native-Americans to undertake entrepreneurial activities. Overall, the growth of minority firms throughout the 1990’s was 17% per year (six times higher than the growth rate for all firms).



Federal Spending

The goal to proper budgeting is to make sure
A. your monthly expenses do not exceed your monthly Take-Home Income
B. you spend more for entertainment than your budget allows
C. you determine if you need a better job
D. your driver’s license is not suspendeds
Check Answer

Correct Answer: A – your monthly expenses do not exceed your monthly Take-Home Income
Your monthly expenses should never exceed your monthly Take-Home Income, outdoor venues for weddings nj. This is how people get into debt, especially if they carry balances on their credit cards

Net Income Includes:
A. your budgeted allowance.
B. only your Social Security
C. salary, wages, child or alimony support and Social Security
D. your gross pay before taxes are taken out
Check Answer

Correct Answer: C – salary, wages, child or alimoney support and scoal Security 
Your salary(after taxes), wages, child or alimony support and Social Security make up your net income. From this income you will pay your mortgage, rent and other cost of living expenses.

Compulsive Spending means?
A. working longer hours to make more money to spend.
B. buying more food than your diet requires.
C. spending less on frivolous items.
D. lack of control of the emotions and impulses that stimulate your desire to spend money
Check Answer



Correct Answer: D Lack of control of the emotions and impulses that stimulate your desire to spend money.
This is the biggest factor that gets us all into trouble. Because of our emotions we need a budget that spells out exactly what we can spend, especially on compulsive items.

We should try to pay off the full credit card balance each month.

Check Answer

Correct Answer: True
If you can not pay off the full balance of your credit cards every month then you are spending more money than you are taking home. This is the easiest way to see if you are maintaining your budget.

It is ok to have more than four credit cards.

Check Answer

Correct Answer: False
The more credit cards you have the more trouble you will get into. Too many credit cards will make managing your budget more difficult. It is good to have the following:
– Bank Credit Card (Visa or MasterCard)
– Gas and Oil Company Credit Card
– Department Store Credit Card
– ATM/Check Card

Check your credit report every ___ months from all three bureaus
A. 12
B. 6
C. 24
D. never
Check Answer

Correct Answer: B – 6
Check your credit report every 6 months from all three bureaus. Credit bureaus are always making mistakes which could cost you when you need credit. It is a good practice to make sure your credit report is up to date before you look for new credit.

You should strive to keep your financial records organized.

Check Answer

Correct Answer: True
A good way to keep receipts and statements is to buy an accordion file organizer. The file is organized by month so you can easily toss receipts and statements into the correct pocket. You will find it easy to retrieve the item in the future. Save each year for at least 5 years.

Which are the two basic types of consumer debt?
A. secured debt and basic debt
B. household debt and short term debt
C. secured debt and unsecured debt
D. credit card debt and mortgage
Check Answer

Correct Answer: C – secured debt and unsecured debt 
Secured debt means a loan that is secured by collateral, i.e., a home. Unsecured debt refers to credit cards and and small loans.

Debt-to-Income Ratio shows:
A. amount of your Take-Home Income compared to your overall monthly debt
B. Debt quotients compared to cost of living
C. Your income and the national debt
D. none of the above
Check Answer

Correct Answer: A – amount of your Take-Home Income compared to your overall monthly debt
Debt-to-Income Ratio is the simplest method that a creditor or lender may use to compare the amount of your Take-Home Income with the amount of your overall debt, excluding your mortgage or rent payment. This method will tell the creditor or lender what percentage of your Take-Home Income is being used to pay for non-mortgage related debt.





Debt Collectors May Not:
A. Give false or misleading information on your debt to you or others
B. Phone you after 9:00 p.m. or before 8:00 a.m. within your time zone
C. Disturb your work duties at your employment
D. all of the above
Check Answer

Correct Answer: D – all of the above
There are federal guidelines that tell collectors what they can and can’t do. The bottom line is that they have to be reasonable and can not harass you.

Revolving credit applys to:
A. mortgages
B. credit cards
C. auto loans
D. school loans
Check Answer

Correct Answer: B – credit cards
Credit cards are considered to be revolving credit. They allow you to pay for all or part of your debt balance owed on your credit card. They are considered unsecured and require no collateral when purchasing items and services. When revolving credit is extended to you, the credit card company or lender trusts you to repay the debts you have created using their money. Issuing revolving credit can be very risky for the lender and usually carries a high interest rate.

A good credit score is?
A. 1600
B. 800
C. 450
D. 350
Check Answer

Correct Answer: B- 800
A credit score is a number generated by mathematical formulas which helps lenders determine if you are a good risk for credit. The most frequently used version of the credit score is the FICO score, called that because it was created by Fair Isaac Corporation. A FICO score is a snapshot of your credit risk picture at a particular point in time. A score can range between 300 and 850. The higher your score, the lower the risk to lenders.

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