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Consumerism & Financial Literacy Flashcards | StudBud
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Consumerism & Financial Literacy
Consumerism & Financial Literacy
28 terms
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Independent Living class
Flashcards
28 cards
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Questions
28
Answers
1
Credit score is based on the following except...
the types of credit cards you have.
your religion.
your payment history.
the amounts that you owe on your bills.
2
If I buy shoes for $80 on Nov 25 with my credit card, I will not pay any interest if...
I pay $40 on the next bill and $40 on the bill after that.
I buy another pair of shoes at 1/2 off.
I pay the bill in full and on time when it comes in the mail
3
A consumer is a (2 possible answers)
cashier
bank teller
Buyer or seller
Thrift shop store owner
4
Another benefit of having good credit is...
getting the apartment of your dreams.
landing a good job.
both of these answers are correct
5
Having to pay fees and penalties on a credit card will not ruin your credit score.
False
True
6
My credit score is bad. It would go up if I closed out 5 of my credit cards, right?
Yes!
No!
7
The range for a credit score is between ______ - _______.
50-350
300-850
30-650
500-1000
8
When you over draft your account, it means that you spent more than you have in the account.
False
True
9
Your ______ ______ is a snapshot of your credit risk at a particular point of time.
credit agency
credit card
credit history
credit score
10
A secured credit card is linked to your bank account and helps you build credit.
False
True
11
When you bounce a check, you might get a fee from the bank and from the vendor.
True
False
12
An annual fee is the amount you are charged for the ________.
day
grace period
month
year
13
When you sign up for a credit card, you should...
ask about any fees
ask about the grace period
all of these answers are correct
ask about the interest rate
14
Bankruptcies usually stay on your report for ___ years.
2
3
5
7
15
A benefit of having good credit is getting a car loan at a low interest rate.
false
true
16
Bouncing a check or over drafting your account can cost you a lot in the long run!
No!
Yes!
17
An example of a type of credit is
a grace period
a gift card
a credit card
a pre-paid credit card
18
A pre-paid credit card does not help you build credit.
True
False
19
You can raise your credit score by keeping a high balance on your credit card.
True
False
20
It is okay to skip a credit card payment every other month.
Yes!
No!
21
A cash advance is dangerous because (2 answers are correct)
the interest rate is low
the interest rate is higher
the interest starts to accrue immediately
there is a 25 day grace period
22
Accumulating too much debt can _____ your credit score.
increase
ruin
raise
accelerate
23
A cash advance is a wise financial decision.
True
False
24
You get charged interest on a first time purchase during a grace period.
False
True
25
Have credit cards, but use them _______________!
irresponsibly
sometimes
often
responsibly
26
An Annual Percentage Rate (APR) is...
a rate of interest that reflects your spending habits
The exchange rate that you are charged annually
the percent of interest that you are charged on your balance
a percent of your income given per year to the credit card
27
What is one way to exercise your financial literacy skills?
Get a car loan
Open a checking & savings account
Budget your money
All of the above
28
Financial Literacy means
Being able to understand how finances work
Reading the Business section of the newspaper
Being able to drink a cup of coffee while looking important
Reading the Dow Jones index
