Which of the following will result in your paying the LARGEST amount of interest to the credit card company?

Making the minimum payment every month

Which should you use when creating a budget - your NET PAY or GROSS PAY?

Net pay is reported to the government by your employer for tax purposes

Tahira wants to put a small portion of every paycheck into a low-risk investment. Which would be her best option?

Invest in an S&P 500 index fund

When it comes to paying for college, your best option is

a grant or scholarship, because you don't repay them

Anna receives her first paycheck & her take-home pay is less than t rate she was offered when hired. Which of

Taxes, social security, and Medicare are being deducted from her pay, her pay is smaller because businesses pay high school students less

Which of the following is a method of accessing the money in your checking account?

Insert your debit card at store & sign the electronically or paper receipt

Sylvester is taking out a loan and is confused by the jargon. Which of the following explanations might help him?

INTEREST RATE what lender charge per yr & PRINCIPAL is initial amount

Which of the following statements best describes the impact of culture on consumer behavior?

Culture shapes the values and beliefs that drive buying decisions.

Which description of the difference between saving and investing is MOST accurate?

Savings accnts provide rate of return that is less risky. investing doesn't

Which of the following people is MOST likely to be a victim of identity theft?

regularly check bank account balance using local WiFi connection

Each of the following is a benefit of using online and mobile banking EXCEPT.

You can eliminate overdraft fees

When making a decision about a financial product (loan, savings account, credit card which advice is LEAST valuable

Simply choose the option that your parents use

What is compound interest?

Interest on principal and accumulated interest

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2025 Wright Fin Lit Final Exam Review

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Questions 24

Answers

1
What is considered the most important factor influencing a consumer's buying decision?
Marketing Mix Factors
Functional Factor
Economic Factor
Psychological Factor
2
How can you improve your credit score?
When merchants ask, "Credit or debit?" always choose credit
Spend more money on each of your credit cards
Pay all of your bills on time
Pay off and then close all of your credit cards
3
The U.S. economy is sometimes characterized as having a "______________ economy."
efficiently
consumer
supply
private
4
Which of the following will result in your paying the LARGEST amount of interest to the credit card company?
Paying off your balance every month
Saying "credit" every time the cashier asks "Debit or credit?"
Paying 20% of your credit card balance every month
Making the minimum payment every month
5
Which of these is an asset?
Student loan
Credit card debt
Car loan
Savings account
6
Which should you use when creating a budget - your NET PAY or GROSS PAY?
Gross pay, because it’s the total amount you’ve earned that month
Gross pay it’s the total amount earned minus any recurring bills you owe
Net pay total amount you’ve earned minus taxes & other deductions
Net pay is reported to the government by your employer for tax purposes
7
Tahira wants to put a small portion of every paycheck into a low-risk investment. Which would be her best option?
Buy shares of a super profitable tech company
Invest in an S&P 500 index fund
Pick 12 stocks a variety of industries & invest in one each month
Complete a 1040 form
8
When it comes to paying for college, your best option is
work-study, because it comes with low, fixed interest rate
a Federal student loan they offer low, fixed interest rate
a grant or scholarship, because you don't repay them
a private loan tailored specifically for you and your family
9
Anna receives her first paycheck & her take-home pay is less than t rate she was offered when hired. Which of
Taxes, social security, and Medicare are being deducted from her pay
employers charge a payroll fee so the company collects to offset the cost
Her company is downsizing and has decided to pay her less without notice
her pay is smaller because businesses pay high school students less
10
What is the recommended size of an emergency fund?
12 months of expenses
1 month of expenses
2 weeks of expenses
3-6 months of expenses
11
Which of the following is a method of accessing the money in your checking account?
Take money from the ATM using your credit card
Deposit a paycheck from your job
Buy a prepaid card using cash
Insert your debit card at store & sign the electronically or paper receipt
12
Sylvester is taking out a loan and is confused by the jargon. Which of the following explanations might help him?
TERM is the length of loan, & INTEREST RATE is how much total money pay
PRINCIPAL how much is owed per month & TERM is how much he owes overall
MONTHLY PAYMENT how much interest costs each month & TERM is the lender
INTEREST RATE what lender charge per yr & PRINCIPAL is initial amount
13
Which of the following statements best describes the impact of culture on consumer behavior?
Culture has no influence on consumer choices.
Culture shapes the values and beliefs that drive buying decisions.
Culture only impacts luxury goods purchasing.
Culture only affects young consumers.
14
Which description of the difference between saving and investing is MOST accurate?
Savings accnts provide rate of return that is less risky. investing doesn't
Investing is for the short-term & emergencies & saving is best long-term
Saving and investing are the exact same thing
less than $10,000 in an account, you are doing is saving.
15
Which factor does NOT affect your credit score?
Credit utilization
Your salary
Payment history
Length of credit history
16
In order to qualify for financial aid, prospective college students must file their __________
Financial aid letter
Parent's credit score
FAFSA
PSAT, SAT, or ACT scores
17
In a market economy, __________ and demand determine the prices of goods and services.
consumer
efficiently
supply
private
18
Carmen has received paperwork from her new job. Which of the following should be her first step to pay correct taxes
Complete an I-9 form
Complete a 1040 form
Buy a copy of TurboTax and file her tax
Complete a W-4 form
19
When deciding which college has the lowest cost of attendance, which is the most important for students to consider?
Room & board
Sticker price
FAFSA
Net price
20
Which of the following people is MOST likely to be a victim of identity theft?
use a different, strong passwords for various accounts
regularly check bank account balance using local WiFi connection
shreds all documents with personal information before throwing them away
avoid posting on social media topics used as security questions
21
Each of the following is a benefit of using online and mobile banking EXCEPT.
You can transfer money electronically between accounts
You can eliminate overdraft fees
You can keep an ongoing record of your deposits and withdrawals
You can check your balances before you make a purchase
22
When making a decision about a financial product (loan, savings account, credit card which advice is LEAST valuable
Read the fine print of disclosures so you understand the fees & terms
Compare products based on important factors
Do research to learn more about each of the options
Simply choose the option that your parents use
23
What percentage should be allocated to needs in the 50/30/20 budget rule?
40%
10%
20%
50%
24
What is compound interest?
Fixed monthly payment
Interest only on principal
Interest on principal and accumulated interest
One-time interest payment

2025 Wright Fin Lit Final Exam Review Flashcards | StudBud