Do you understand the basics? - CentSai Education

Question 1 /10

1. What is the name of the federal agency that collects taxes on your wages?*

Question 2 /10

2. Which statement is not true about budgets?*

Question 3 /10

3. A FICO (type of credit rating) score is:*

Question 4 /10

4. Which of the following does your FICO score not consider:*

Question 5 /10

5. When managing your credit, what’s a good rule to follow?*

You should keep your credit card balances low and make timely payments each month.
It’s ok to use a credit card when you see something you like, even if you don’t have the money to pay for it.
It’s ok to make only the minimum payment each month.
A credit card is the same as an emergency fund.

Question 6 /10

6. It’s best to start saving for retirement early because:*

You are guaranteed to become a millionaire.
Doing so guarantees you will retire early.
You can benefit from the power of compounding interest by earning more on your money.
People who save for retirement don’t have to pay into Social Security.

Question 7 /10

7. What’s the approximate average FICO credit score of consumers in the U.S.?*

Question 8 /10

8. When it’s time to purchase your first car, which expenses should you consider?*

Question 9 /10

9. Which of the following best describes gross income?*

The amount of earnings that remains after all taxes and deductions have been taken.
Your total income minus payroll taxes.
The total amount of earnings before any taxes or deductions are taken.
Gross income is the same thing as take-home pay.

Question 10 /10

10. Which of these would be an important reason to save money?*

To buy a new iPhone in order to impress family and friends.
To meet a financial goal, such as building an emergency fund, saving for college, or buying a car.
To go on a shopping spree because you so deserve it.
To pay for a lavish spring break vacation with friends.

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