Fin Lit Quiz

The grace period refers to the time between the billing statement date and the due date.

Discretionary spending is the same thing as a fixed expense.

Often fluctuates throughout the year (gasoline, electricity bill, groceries)

Principal is the amount of money with which you open a savings account.

If your creditworthiness is low, your credit card interest rate will also be low.

Occurs when someone steals your personal information and uses it to get loans, credit card, etc

The assets you own, including real estate, savings, and investments.

The best PIN is one you won't forget, but no one will ever guess.

A good rule of savings is "pay yourself last".

Goods and services that are not essential to daily living, but make you happy.

How much debt you can manage, based upon your income.

If you need constant access to your funds, a traditional savings account is a good option.

The main purpose of a budget is to slow down spending.

Instead of being linked to your bank account, it lets you spend only what is on the card.

Prepaid cards play an important role in establishing one's credit history.

Bankruptcy is the best way to handle your debts.

A house is considered capital.

Some prepaid cards require a PIN to use, but others do not.

Same amount ever month (rent, car payment)

Your identity will not likely be stolen if you don't have a credit card.

If your monthly income is $2,000, saving $200 would be a smart goal to set.

A certificate of deposit is a good savings option if you can leave money untouched for a while.

All credit cards charge an annual fee.

Amount of money you put in your account to begin saving.

Most credit cards are issued by airlines and hotel chains.

A budget can usually help you spend less and save more.

Keeping older accounts open, even if they have a zero balance, can help your credit history.

Entitles you to make purchases based on your promise to pay for these purchases at a later date

All online shopping is safe.

All emails that look like they are from your bank and want to verify your account is okay.

Percentage amount of your principal that banks pays into your account.

Contacting lenders when you can't make a payment is a good step toward protecting your credit.

A fixed expense costs the same amount every month.

Spend money on something you want versus something you need (snack or soda)

All of the monthly expenses associated with the goods and services for daily living

Liquidity refers to how accessible your money is to you.

Having lots of debt on your credit card helps your creditworthiness

How well you handle financial obligations.

Money the bank pay you for leaving it in your savings account

Also called a "check card"