Thanks for Entering! Below, You May Find the Answers to the Quiz

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Answers:

  1. (C) – Your net worth is the total value of your assets (including the market value of your home) minus your liabilities (including what you owe on your mortgage).

  2. (B) – Home prices have come down significantly, and it may be the right time to buy, but be realistic when it comes to figuring out how much you can spend. Be sure that your payment, including principal, interest, taxes and insurance does not exceed 25 percent of your gross income of 35 percent of your take-home pay.

  3. (E) – All of the above. For most people, this is a once-in-a-lifetime event. Plan accordingly so that you can enjoy the money for a long time.

  4. (C) – Your history of paying down your debt is the most important factor in your credit score.

  5. (C) – A short sale does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency, unless settlement is clearly indicated on the acceptance of offer.

  6. (C) – Under IRS guidelines, you can save up to $17,000 in your 401k if you are under 50 years old; $22,500 if you are over 50.

  7. (C) – Typically, accurate negative information will stay on your report for 7 years. A bankruptcy can stay on your report for 7 or 10 years.

  8. (B) – Report your card lost or stolen immediately. In the event that your credit card is stolen in the US, federal law limits your liability to $50 regardless of the amount charged on the card by the unauthorized user; however, some card issuers guarantee zero liability if the unauthorized usage is reported immediately.

  9. (B) – Late payment fees cannot exceed the minimum payment on the account.

  10. (C) – Even if you have to start small, set a goal to set aside 6 months of living expenses in an account. This can make facing a financial crisis much less stressful and give you time to figure out the next steps to take. The fastest way to get there is to use things like your tax refund, raises or overtime to get a jump start on your emergency fund.