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1. If you regularly get a large tax refund, you may want to:

Increase the exemptions you claim on your W-4 form, which will increase your net pay
Contribute to an IRA
Get a tax refund anticipation loan

2. What is the advantage of borrowing against a retirement plan versus withdrawing the funds?

You only have to pay a 5% penalty, instead of a 10% penalty
You can borrow more than you can withdraw
You do not have to pay taxes on the amount borrowed, as long as you do not default on the loan

3. Reducing spending is:

Harder to do than increasing your income
Something almost everyone can do
Nearly impossible

4. Which of the following are discretionary expenses?

Mortgages, car loans, and student loans
Groceries, electricity bills, and medical co-pays
Luxury clothing, dining out, and vacations

5. To take an accurate inventory of your debt, you should:

Open all of your bills and call your creditors if needed
Call the credit bureaus
Taking an accurate inventory of your debt is not needed

6. Which bill should you pay first?

Credit card
Mortgage or rent

7. When communicating with a creditor, you should:

Have a plan for the future
Yell at them if they initially say they cannot help you
Tell them your hardship is due to a job loss, even if it is not true

8. What law regulates collection agencies’ conduct toward consumers?


9. How long can most negative information stay on your credit report?

5 years
10 years
7 years

10. What is one of the best ways to prepare for a financial crisis?

Have a home equity line of credit
Have emergency savings
Have umbrella liability insurance

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