What is the main risk of only paying the minimum on your credit card each month?

You may pay a lot more in interest over time

What is a credit score?

A number that shows how well you manage credit

If you write a check for $100 but only have $50 in your account, what might happen?

The check may bounce, and you could face a fee

What is the main purpose of a checking account?

To manage daily spending and bill payments

What is the primary benefit of a savings account?

Earning interest on your savings

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Financial Literacy: Savings Account, Checking Account, Credit and Debt Management

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Questions 11

Answers

1
A credit report is the same as a credit score.
True
False
2
What is the main risk of only paying the minimum on your credit card each month?
Your credit limit will increase immediately
Your credit score will automatically improve
Your card will be canceled
You may pay a lot more in interest over time
3
What is a credit score?
The amount of debt you owe
A number that shows how well you manage credit
The amount of cash you have on hand
Your bank account number
4
Which factor will help your savings grow the most over time?
Making small, occasional deposits
Using your savings account for daily purchases
A low interest rate
Compound interest
5
Having a good credit shows that you are responsible with money and can pay back loans on time.
False
True
6
If you write a check for $100 but only have $50 in your account, what might happen?
Your account will gain interest
The bank will send you a thank-you letter
The bank will automatically cover the rest
The check may bounce, and you could face a fee
7
What is the main purpose of a checking account?
To invest in the stock market
To manage daily spending and bill payments
To earn high interest
To keep money locked away for long-term goals
8
Which action can help you avoid overdraft fees?
Using a credit card for every purchase
Ignoring your account balance
Setting up balance alerts
Writing checks for large amounts
9
What is a good reason to have an emergency fund in your savings account?
To earn reward points
To cover unexpected expenses
To buy luxury items
To avoid monthly fees
10
Which action will likely improve your credit score?
Opening multiple credit cards at once
Skipping a payment to save money
Keeping your credit card balance above 90%
Paying your bills on time
11
What is the primary benefit of a savings account?
A) Easy access to money for daily spending
) Paying bills automatically
Earning interest on your savings
) No fees for withdrawals

Financial Literacy: Savings Account, Checking Account, Credit and Debt Management Flashcards | StudBud