Pre-discharge Financial Management Course

10 Questions | Total Attempts: 31

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Financial Management Quizzes & Trivia

Select the single best answer for each question and mark it by clicking the appropriate circle.


Questions and Answers
  • 1. 
    When restoring your credit after a bankruptcy, which of the following steps is not important?
    • A. 

      Establish an emergency fund with at least 3 months of living expenses set aside.

    • B. 

      Be certain that household living expenses are less than total net household income.

    • C. 

      Be sure to make regular payments, on time, for any loans you have reaffirmed.

    • D. 

      Ensure that your first loan after bankruptcy is on a secured credit card.

  • 2. 
    Select the best way to express a financial goal.
    • A. 

      Save for a rainy day.

    • B. 

      Goals should be specific and in writing.

    • C. 

      Goals don't need to be written down.

    • D. 

      Goals can be specific or vague but they need to be discussed and written down.

  • 3. 
    Select the best definition of net income.
    • A. 

      Net income is "take home pay."

    • B. 

      Net income is the amount left over after just income tax withholding are taken from your gross pay.

    • C. 

      Net income is the total amount of money it costs your employer for you to work for them.

    • D. 

      Net income only applies to people who make their living by fishing.

  • 4. 
    What are periodic expenses, which are also called "hidden costs?"
    • A. 

      Money spent of literature and magazines.

    • B. 

      Expected expenses that occur at least once a year but not every month.

    • C. 

      These are the same as emergency expenses.

    • D. 

      These are your regular monthly expenses.

  • 5. 
    When there is not enough money to take care of an emergency and pay the bills, the best course of action would be:
    • A. 

      Write a check for the emergency if you have overdraft protection.

    • B. 

      Get a payday loan to take care of the emergency.

    • C. 

      Try to set up a payment plan for the emergency expenses.

    • D. 

      Pay for the emergency and worry about the rest later.

  • 6. 
    Select the best definition of Discretionary Income.
    • A. 

      Money that is "left over" after all regular expenses are paid.

    • B. 

      Money you can "waste" every month.

    • C. 

      Money used for luxuries such as dining out at expensive restaurants.

    • D. 

      Describes the condition when your regular expenses are larger than your income.

  • 7. 
    What is the recommended limit of net monthly income to spend on all vehicle expenses?
    • A. 

      25% of your net income.

    • B. 

      It's normally OK to spend 35% of your net income on all vehicle expenses.

    • C. 

      It's normal to spend more that 50% of your net income for vehicles.

    • D. 

      All vehicle expenses should be limited to 20% of your net income.

  • 8. 
    What's the best way to describe a good attitude towards saving money?
    • A. 

      Savings is always first, whether or not you know if you regularly spend more than you make.

    • B. 

      You should be committed to spending less than your net income, before you try to start saving.

    • C. 

      Saving doesn't matter because unexpected expenses come up all the time.

    • D. 

      You can always borrow for whatever you need after your credit is restored.

  • 9. 
    Which item below does not belong on the list of "deby that may be necssary?"
    • A. 

      Payment for children's health insurance premiums.

    • B. 

      A home mortgage.

    • C. 

      A car loan.

    • D. 

      Debt for live saving or quality of life changing medical procedures.

  • 10. 
    Select the response below that is incorrect concerning credit scores. 
    • A. 

      Credit scores are based, in part, on household income.

    • B. 

      Credit scores are used to help predict how well someone would pay back their next loan.

    • C. 

      Credit scores can be used in the employment application and decision process.

    • D. 

      Credit scores can be used by a landlord to decide whether to rent an apartment.