Final assessment

Six questions covering the whole module. You need 80% to pass. Nothing is timed, and the result stays in your own browser.

1. Your net pay is lower than expected. What explains most of the gap? Employer fees Income tax withholding plus FICA and any state or local tax Direct deposit charges Rounding

Show the explanation

Federal withholding, Social Security, Medicare, and state or local tax account for the difference between gross and net.

2. Which action most improves a credit score over time? Closing old accounts Paying every bill on time, every time Holding a high balance to show activity Applying for several cards at once

Show the explanation

Payment history is the heaviest factor by a wide margin.

3. A first emergency fund target that is realistic and useful is: $50 $500 $5,000 Six months of pay

Show the explanation

$500 covers most of what actually derails people at this stage. Three to six months is the long-term target, not the starting one.

4. Why is a longer car loan risky? Interest rates are illegal above 60 months Lower payment, higher total cost, and longer spent owing more than the car is worth Insurance will not cover it You cannot sell the car

Show the explanation

Longer terms lower the monthly payment while raising total cost and extending the period of negative equity.

5. You have a $1,000 credit card balance at 24% APR and pay only the minimum. What happens? It clears in a few months Interest compounds and repayment stretches for years No interest applies to minimums The balance is frozen

Show the explanation

Minimum payments are structured so most of the early payment covers interest. The balance falls slowly and costs far more than $1,000.

6. What is the strongest argument for saving at 18 rather than 28? Better rates for young people Compounding has ten more years to work Lower taxes Employers require it

Show the explanation

Time is the dominant variable in compound growth — a decade of it usually outweighs a larger contribution started later.