1.) If a client cannot make payments on a car loan

"secured" by the car, what can happen?

A.) Lenders generally will give three months to

catch up

B.) They will only be sued for payments owed

on the car even if it's been repossessed

C.) They will only be sued for the "Blue Book"

retail value of the car

D.) Lenders generally do not repossess the

physical object because of wear and tear

2.) What is the purpose of a spending plan?

A.) To show all monthly budget items

B.) To provide a paycheck-by-paycheck plan for

paying expenses

C.) To predict ahead of time when more credit

will be needed

D.) To show when too much is being paid for

Loans

3.) What are the first steps to effective personal

financial management?

A.) Saving enough money to invest, getting

expert advice, and writing a will

B.) Deciding if you will have a child, saving for

retirement, and writing a will

C.) Planning, buying a home, and getting insurance

D.) Setting goals, planning, making a budget

4.) Which saver will have more in an Individual

Retirement Account (IRA) at age 65, assuming

they all earn the same interest rate?

A.) Saver who puts in a $30,000 lump sum at

age 35 and no more

B.) Saver who put in $3,000 every year from age

31 to age 36 and no more

C.) Saver who puts in $3,000 every year from

age 30 to age 65

D.) Saver who put in $3,000 every year from age

18 to age 25 and no more

5.) What is the total number of days the law allows

for you to cancel a contract signed at the merchant's place of business?

A. Zero days

B. Three days

C. Ten days

D. Seven days

6.) Which type of bankruptcy relieves the debtor

of all payments and obligations including taxes,

alimony, government debts and child support?

A.) Only a Chapter 7 bankruptcy, which "forgives"

most debts

B.) Only a Chapter 13 bankruptcy, which reorganizes debt payment

C.) No bankruptcy relieves a person of government debts or family support

D.) Both a Chapter 7 and a Chapter 13 let the

debtor walk away from all debts

7.) All types of life insurance provide:

A. Cash benefits should the policyholder die

B. Cash-surrender value should the policyholder

live

C. Coverage for a specific amount of time

D. Low-interest loan and conversion rights

8.) When you purchase stock, what are you buying?

A.) A share in the assets, earnings and losses of a

company

B.) A seat on the board of directors of a company

C.) A chance to share in the increases of a stock

but not the decreases

D.) A share of a company's stock that has no

value until you sell

9.) Net monthly pay is:

A.) What you make every payday

B.) What you take home every payday

C.) What you take home every month after

income taxes and Social Security (FICA) are

deducted

D.) What you take home every month after

income taxes, Social Security (FICA), and

allotments are deducted

10.) Good financial management states your indebtedness should not exceed what percentage of

your net income?

A. 15

B. 20

C. 35

D. 38