How does a debit card work?

A It lets you pay with the money in your checking account.

Which of the following would you budget for in “Utilities”?

B Your electric and heating bills.

What is a raincheck at the grocery store?

guarantee that you can buy an out-of-stock sales item for same price

You got $200 from your grandma for your birthday. What should you do first?

Record it as income in your budget.

Your employer withholds money from each paycheck. What is this money used for?

B To pay for federal and state taxes.

What is the best way to create a budget?

Divide ur income into categories & plan how much to spend on.

What is double-entry accounting?

B A budgeting method where you record your earnings twice:

Can you withdraw money from a savings account?

A Yes, you can withdraw money from a savings account at any time.

Which statement about online product reviews is true?

D People may post reviews about products they’ve never purchased.

When something earns compound interest, it earns interest on...

C The original amount deposited + any previously earned interest.

The opportunity cost of spending $25 on a concert ticket instead of a new video game is

B The $25 you don’t have for a new video game.

Your new health insurance has a $4,000 deductible. What does that mean?

need to pay $4,000 on medical each year before your insurance kicks in.

On Jan. 8, your account was charged $30.00 for an overdraft fee. Why did that happen?

B You spent more than what was in your account.

When shopping online, it’s a good idea to…

B Look at reviews that focus on product features that matter to you.

Which statement about quality and quantity is true?

A Quality is subjective, quantity is objective.

B The amount originally borrowed or deposited.

What’s the difference between net pay and gross pay?

Gross pay is your total paycheck and net pay..

Identify the best practice for dealing with household bills

C Check PDF or printed monthly statements as soon as you receive them.

Which of the following is true about credit cards?

If you don’t pay balance off in full each month, you’ll have interest.

Why do grocery store sales cycles matter?

help consumers know the best time of year to stock up on products.

Which of the following statements is true about subscription services?

C Subscriptions may come with hidden fees and automatic renewal.

What’s likely to happen when a risky borrower takes out a loan?

When moving to a new rental, you’ll likely need to pay a security deposit. How much is this often?

C First and last month’s rent.

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Financial Literacy Summative review

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Questions 59

Answers

1
$500 on credit card to buy a new TV and paid it off after 6 mth. With interest, total of $600. Which is the principal?
C $100.
500
D $600.
B 6 months.
2
How does a debit card work?
gives you the option to choose the account you pay with.
A It lets you pay with the money in your checking account.
automatically deducts cash from savings account.
bank or credit union lends money that you have to pay back later.
3
Which of the following would you budget for in “Utilities”?
C Your grocery budget.
Your college savings fund.
D Your car repairs.
B Your electric and heating bills.
4
You decide to stop at the ATM and get money out of your account before going to the store. You’re a making a(n):
D Withdrawal.
B Credit.
Claim.
C Expense.
5
What is a raincheck at the grocery store?
guarantee that you can buy an out-of-stock sales item for same price
guarantee that you can buy the item at the sale price next week.
guarantee that a store will set aside the item for when it’s back in stock.
guarantee that the sale item you want will be back by the end of the week.
6
You got $200 from your grandma for your birthday. What should you do first?
D Spend it.
Record it as income in your budget.
C Deposit it all straight into your savings account.
B Stick it under your bed for safekeeping.
7
The money originally deposited into an account or borrowed on a loan.
Principal:
Incentive:
Dividends:
Interest:
8
Your employer withholds money from each paycheck. What is this money used for?
To make up for hours of work you missed.
B To pay for federal and state taxes.
D To deposit into a separate company account.
C To maintain your office building.
9
Why wouldn’t every purchase you made show up on your account statement?
Some take time to clear.
C Your account statement only shows withdrawals, not purchases.
B Only purchases over $100 are included on your statement.
D Your statement only includes suspicious purchases.
10
What is the best way to create a budget?
Divide ur income into categories & plan how much to spend on.
Decide a max amount you can spend each week. Don't Spend over it.
A Split your income in half: save 50% and spend 50%.
Create min savings goals that you reach before you can buy any “wants.”
11
What is double-entry accounting?
C A department at most companies that handles all the money and receipts.
B A budgeting method where you record your earnings twice:
budgeting plan for double expense 2 ensure you never budget less than need.
A way to 2x ur expenses through all of your receipts twice a month.
12
Can you withdraw money from a savings account?
A Yes, you can withdraw money from a savings account at any time.
B Yes, but you’ll need to get a savings card to access the money.
C Yes, but you’ll have to pay a fee if it’s before the maturation date.
Can you withdraw money from a savings account?
13
Which statement about online product reviews is true?
B Older reviews are always the most reliable.
C Newer reviews are always the most reliable.
A Look at the star ratings for the most unbiased information.
D People may post reviews about products they’ve never purchased.
14
When something earns compound interest, it earns interest on...
C The original amount deposited + any previously earned interest.
B Only money deposited in the last year.
Compound interest, earns interest on...
A Only the original amount deposited.
15
What does APY stand for?
A Average Paying Year
D Automatic Payout Y-Axis
B Account Permitted for Youth
C Annual Percentage Yield
16
The opportunity cost of spending $25 on a concert ticket instead of a new video game is
A The time you spent researching the new video game.
B The $25 you don’t have for a new video game.
The $25 you don’t have a new video game.
D The $25 spent on the concert ticket.
17
What’s the best way to compare the true price of two similar products, like different boxes of crackers?
B Look at the product to dollar ratio.
A Look at the price per ounce.
D Look at the price of the generic vs. name brand box.
C Look at the cost savings differential.
18
How often are you required to make payments on an auto loan?
C Once a month.
Once a week.
D Every time you get a paycheck.
B Every other week.
19
Your new health insurance has a $4,000 deductible. What does that mean?
pay the insurance company $4,000 a year to cover all medical expenses.
insurance covers up to 4 g's of medical yearly & then u cover the rest.
D Your insurance will pay up to $4,000 for each medical visit you have
need to pay $4,000 on medical each year before your insurance kicks in.
20
On Jan. 8, your account was charged $30.00 for an overdraft fee. Why did that happen?
C You went over the limit of transactions per month.
It was time for the monthly fee you pay to maintain your account.
B You spent more than what was in your account.
wrote three checks that month and have to pay a $10 fee for each.
21
Ihe assistance provided by a company to consumers who purchase or use its services
Lease:
Customer Service:
Credit Score:
Debit card:
22
Your apartment was broken into and stole all of your stuff. You have renter’s insurance. What next?
File a claim.
C Submit a powerpoint presentation.
D Prepare a lease.
B Write a deductible.
23
A request to your insurance company to pay for healthcare that youve already receive
Liability:
NCUA:
Claim:
Interest:
24
Which of the following accounts does NOT earn interest?
A Checking Account
C CD
B Savings Account
D None of the above
25
What’s the #1 reason to keep your money in an insured financial institution?
A You’ll have access to seed accounts.
D Your money will be safe.
C Your transactions won’t be limited.
B You can start pillar saving.
26
A contract that allows you to borrow someone's property for a specified amount of time and money.
Interest:
Checks:
Lease:
Bounce:
27
When shopping online, it’s a good idea to…
A Read every review so you really know what you’re getting.
D Buy the least expensive product to minimize risk.
B Look at reviews that focus on product features that matter to you.
Search online then find product in a physical store and purchase it there.
28
Which statement about quality and quantity is true?
A Quality is subjective, quantity is objective.
D Increased quantity leads to increased quality.
C Increased quality comes with decreased quantity.
B Quality is objective, quantity is subjective.
29
What is principal?
B The amount originally borrowed or deposited.
C The interest someone has earned or owes.
A The fee charged when you miss a loan payment.
What is principal?
30
A number that shows the difference between what a business has earned vs what it owes.
Solvent
Bounce:
Bottom Line:
Deposit:
31
An amount paid to the government to pay for services and programs.
Deposit:
Warranty:
Claim:
Tax:
32
What is the name of the document that tells you what you need to pay on your credit card?
Overdraft
Deposit
Statement
Lease
33
Payouts based on profit to an investor.
Dividends
withdraw
Interest
Stock
34
What’s the difference between net pay and gross pay?
C Gross pay is what you get from a full time job.
B Net pay is your total paycheck and gross pay.
D Net pay is what you deposit into an account.
Gross pay is your total paycheck and net pay..
35
If you pay off only the amount owed on your credit card each month, but don’t pay it off
A Making your minimum payment.
B Paying your balance.
D Paying your dues.
C Making your interest-avoidance payment.
36
Identify the best practice for dealing with household bills
D Put household bills in the same spot so they don’t get lost
A Put everything on autopay so you don’t risk late payments.
C Check PDF or printed monthly statements as soon as you receive them.
B Opt for email delivery of monthly statements to minimize unopened bills.
37
car was towed due to parking illegally. You paid the with a check and took this unexpected expense from which budget?
C Reserves.
D Rent.
B Utilities.
Entertainment.
38
What is the name of the document that comes with your paycheck. Shows your pay and how much was taken for taxes?
Paystub
C Pay Report.
D Pay Sheet.
Payline
39
If you decide to rent a place to live, you’ll need to sign a ____
Lease
B Rental Withdrawal.
Mortgage
D Claim.
40
Which of the following is true about credit cards?
Using credit card is the best way to pay for unexpected expense.
A You can’t use a credit card at most stores.
If you don’t pay balance off in full each month, you’ll have interest.
Credit cards allow you to access money in your checking account.
41
Why do grocery store sales cycles matter?
D They don’t matter if you’re meal planning to save money
help consumers know the best time of year to stock up on products.
C They don’t matter if you choose grocery pick-up or delivery.
B They help employees know when to put items on sale.
42
Choosing whether to purchase a name brand or generic item comes down to:
B Price compromises
C Quality compromises
A Style and trends
D Personal preference
43
If you want to earn as much interest as possible, where is usually the best place to put your money?
A A savings account
D A lender account
B A CD
C A checking account
44
How can you access money in a checking account?
D All of the above
C Withdrawals
A Checks
B Debit Card
45
account statement says you have -$52.79. After the $307.74 deposit from Bookstore, what is your new account balance?
$316.95.
B $256.92.
D $254.95.
C $265.29.
46
Which of the following statements is true about subscription services?
Which of the following statements is true about subscription services?
C Subscriptions may come with hidden fees and automatic renewal.
A Annual billing is always cheaper than monthly billing.
B Annual billing is always more expensive than monthly billing.
47
There are many costs associated with owning a car. Which of these is not something you’ll need to pay for?
C Inspection.
B Registration.
D Arbitration.
Maintenance.
48
What’s likely to happen when a risky borrower takes out a loan?
C They’ll have their credit history checked, unlike a low-risk borrower.
What’s likely to happen when a risky borrower takes out a loan?
A They’ll pay a high-risk fee.
B They’ll fill out more forms than a low-risk borrower.
49
What happens if you go into debt?
B You’ll likely pay more than you borrowed due to interest.
C Your net worth will be negatively affected.
D All of the above.
You’ll need to pay back a minimum amount every month.
50
When moving to a new rental, you’ll likely need to pay a security deposit. How much is this often?
C First and last month’s rent.
$500.
B 75% of one month’s rent.
D Four months of rent.
51
The price a product could sell for in the future.
Resale Value:
Solvent
Principal:
52
National Credit Administration. A part of the government that insures and regulates them to keep customers safe.
Resale Value:
Unit Price:
rain Check:
NCUA:
53
A coupon Issued to a customer that guarantees a sale item.
Debit card:
Deposit:
rain Check:
Dividends:
54
Expenses that don't change in dollar amount from month-to-month, like a mortgage or rent,and insurance payments
Fixed Expenses:
FDIC:
Debit card:
Lease:
55
A savings account has..
A Variable interest, meaning the rate can change at any time.
Variable interest, chunks of money in the account have different rates
the time of year they were deposited.
A savings account has..
56
A benefit or reason for doing something. Ex: Interest gives an incentive to save end up earning more money.
Brand Reputation:
Customer Service:
Incentive:
Overdraft Fee:
57
Because influencers are sometimes paid to promote products, it’s a best practice to:
C Do your own research into product recommendations before purchasing.
D Only take recommendations from influencers you trust.
A Never follow an influencer’s purchase recommendations.
purchase recommendations that are also available in physical stores.
58
What is a health insurance copay?
B The amount you pay for insurance each month.
C The tip you give to the doctor if you think they did a good job.
The amount you pay when you visit a doctor.
Amount ur insurance will be required to pay after you visit the doctor.
59
When is it worth it to pay less money for a lower quality product?
D It’s never worth it to buy a low-quality product.
B When you only need it to last a short time and it fits in the budget.
C When you want to spend as little money as possible.
you’re willing to take a chance but might not last as long as you hope.

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