Arkansas Financial Literacy Unit 2

Question 1

If you are concerned about safety in your savings account, which type of bank should you choose

Accepted Answer

Choose either a bank or credit union

Question 2

What is the general rule to minimize i.d. theft when dealing with credit reports

Accepted Answer

check each credit report once per year

Question 3

When is a spending plan complete?

Accepted Answer

each Dec 31 as one year ends and a new one begins

Question 4

What is the first step in creating a spending plan?

Accepted Answer

develop a control system that will work with your life style

Question 5

Which of the following is NOT something a thief might do with info from a stolen wallet?

Accepted Answer

Take a college admissions exam using the stolen i.d.

Question 6

A person's bank account is least likely to be used by scammers.

Accepted Answer

false

Question 7

Which strategy would be the most effective way to decrease risk of credit card fraud?

Accepted Answer

sign the back of the card with "Please see picture I.D.

Question 8

Minimum balance fees are common fees that may be charged by depository institutions.

Accepted Answer

True

Question 9

Wrongfully acquiring & using someone else's identity is an act of identity theft.

Accepted Answer

True

Question 10

What does net gain mean?

Accepted Answer

earning more money than spending

Question 11

Overdraft fees are common fees that may be charged by depository institutions.

Accepted Answer

True

Question 12

A common fee that may be charged by depository institutions is ATM fees

Accepted Answer

True

Question 13

When earning interest from a savings account look for low interest rates

Accepted Answer

False

Question 14

Receiving permission to use a parent's credit card is an act of identity theft

Accepted Answer

false

Question 15

If expenses were to exceed income on a spending plan, what is the smart solution?

Accepted Answer

decrease expenses

Question 16

Which of the following actions will not make an individual vulnerable to i.d. theft

Accepted Answer

paying cash for a movie ticket

Question 17

What aspect of security at a depository institution is NOT TRUE?

Accepted Answer

Banks insure accts that has ho more than $100,000

Question 18

Which of the following should not be listed as an asset in a statement of financial position?

Accepted Answer

money in a future paycheck

Question 19

To increase his net worth, Jackson should:

Accepted Answer

increase his assets

Question 20

A key difference between commercial banks and credit unions is that:

Accepted Answer

comm. banks are for profit & credit unions aren't for profit

Question 21

What is the net worth calculation?

Accepted Answer

assets-liabilities=net worth

Question 22

You overdrew your checking acct by $10.00, as a result you can expect to be charged a(an)

Accepted Answer

Overdraft fee

Questions 22