Debtwave Financial Education Test Name:*Client ID:*Phone:*E-mail:* 1. Define what wealth means to you.*2. Choose the correct formula for calculating your net worth:*A. Assets minus liabilities = net worthB. Assets multiplied by liabilities = net worthC. Assets plus liabilities = net worthD. Assets divided by liabilities = net worth3. List three of your assets (or examples of assets if you don't have three).***4. List three of your liabilities (or examples of liabilities if you don't have three).***5. My short-term financial goals are:***6. My long-term financial goals are:***7. When setting a savings goal you should always set the goal high so you can get rich as quick as possible.*A. TrueB. False8. When you receive a raise at your job, you should try to:*A. Use that money towards credit card paymentsB. Pretend it doesn’t exist and have it go to savings or investment accountC. Use it for an extra night outD. Take it to VegasE. Both A and B9. A basic emergency fund should consist of:*A. Dependence on a rich friend or family memberB. Having a high limit credit cardC. Having $1,000 in a standard savings accountD. Establishing an account with a local pay day loan company10. What percentage of your take home income is recommended to be deposited into an interest-bearing savings account each paycheck?*A. 0 percentB. 5 percentC. 10 percentD. 6 percent11. A budget allows you to do all of the following except:*A. Ensure you don’t spend more than you makeB. Understand where your money goesC. Find uses for your money that will increase your wealthD. Spend more than you bring in12. Which of these steps do you need when creating a budget?*A. Determine how much you spend on monthly recurring expendituresB. Calculate your monthly income before and after taxes (retirement and health insurance, if applicable)C. Determine how much you spend day-to-day by tracking your daily expensesD. All of the above13. List three expenses that you could cut back on or eliminate.***14. Your gross income is defined as earnings after taxes and deductions.*A. TrueB. False15. Keeping track of your daily expenses helps you:*A. Increase your credit card spendingB. Increase your incomeC. Become motivated to make changes to your spending habitsD. Go shopping more often16. All of the following are cons of using credit cards except:*A. Potential for overspendingB. Terms and conditions of contracts are difficult to comprehendC. Can help build credit historyD. Target for scams and fraud17. The formula for calculating your approximate yearly finance charges is:*A. Total debt divided by monthly paymentB. Monthly payment divided by APRC. Monthly payment divided by total debtD. Total debt multiplied by APR18. The formula for calculating your approximate monthly finance charge is:*A. Yearly finance charge divided by monthly paymentB. Yearly finance charge divided by 12C. APR multiplied by 12D. Monthly payment multiplied by APR19. The yearly finance charge for a balance of $12,721 with a 6.99 percent interest rate is:*A. $1,027.38B. $889.20C. $732.99D. $1,162.2620. What is the monthly finance charge of a balance of $25,442 at a 28.99 percent interest rate?*A. $532.21B. $389.64C. $614.64D. $708.0721. The minimum payment that credit card companies typically require each month is:*A. 4 to 5 percent of the balanceB. 3 to 4 percent of the APRC. 2 to 3 percent of the balanceD. 2 to 3 percent of the yearly finance charges22. Making a fixed payment that is greater than the minimum payment toward credit card debt is a wise decision because it will help pay off the balances more quickly than making the minimum payment every month.*A. TrueB. False23. All of the following will help you get out of debt except:*A. Getting organizedB. Continuing to use credit cards on a monthly basisC. Paying more than the minimum paymentsD. Lowering your interest rates24. When making a list of all of your unsecured debt you want to include the following except:*A. BalanceB. APRC. Name of creditorD. Address of creditorE. Current payment25. It is wise to pay for credit card insurance.*A. TrueB. False26. Why is it never a good idea to borrow or withdraw against your 401(k)?*27. List three traits of a predatory lender.***28. For a 30-year, fixed-rate mortgage what would the monthly payment be for a $140,000 loan at a 5 percent interest rate?*A. $532B. $823C. $752D. $89929. What is the difference in the monthly payment between 4 and 14 percent interest in a $150,000 loan?*A. $1,060B. $928C. $1,103D. None of the above30. List four ways to ensure you get the best loan possible for you.****32. Credit reports have information regarding race, religion, medical history, political preferences, criminal record and other information unrelated to credit.*A. TrueB. False33. List the four types of information that appear on your credit report.***34. All these types of credit are reported on a monthly basis to the credit reporting bureaus except:*A. Car paymentB. RentC. Student loanD. Credit card(s)35. What is a credit score?*36. What is the range of FICO scores?*A. 300 - 850B. 300 - 800C. 500 - 900D. 400 - 95037. Payment history accounts for what percentage of your FICO score?*A. 10%B. 15%C. 30%D. 35%38. Debt-to-credit ratio accounts for what percentage of your FICO score?*A. 10%B. 15%C. 30%D. 35%39. What are the four Money Avoidance Disorders?*A. Hoarding, overspending, financial infidelity, financial incestB. Financial denial, financial rejection, underspending, excessive risk aversionC. Workaholism, financial enabling, underspending, hoardingD. Financial rejection, compulsive buying disorder, unreasonable risk taking, workaholism40. Sherry was the beneficiary of over $100,000 when her father passed away. Within two weeks, she spent all of the money. Which money disorder does Sherry demonstrate?*A. Financial incestB. Financial enablingC. WorkaholismD. Financial rejection41. Money Worshipping Disorders place a disproportionate amount of importance on money: earning it, saving it and spending it. What do people with these disorders typically believe?*42. Which of these is not a Relational Money Disorder?*A. Financial incestB. Financial infidelityC. Financial gainsD. Financial dependencyE. Financial enablingWe take your privacy seriously. By clicking the button below, you agree to share your information with Debtwave and/or our partner(s) and you authorize us to contact you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, cellphone, mobile device (including SMS and MMS) and/or email, even if your telephone number is currently listed on any state, federal or corporate Do Not Call list. Your consent to the above is not required as a condition of purchasing or receiving our services.