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Financial Literacy: Earning, Saving, and Borrowing Flashcards | StudBud

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Financial Literacy: Earning, Saving, and Borrowing

8 terms·StudBud Administration·139 plays

Basic financial literacy info questions on earning, savings, and borrowing.

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Questions 8

Answers

1
Which is NOT a myth about the importance of saving for retirement?
Social security mostly provides enough support in retirement
Savings are not needed for a pension covers your full salary
Once you retire, you no longer make a wage
You spend less money once you retire
2
What is NOT a factor influencing your net income (take-home pay)?
Social security and medicare taxes
Health insurance cost deductions
Employer contributions to your retirement account
Retirement savings deductions
3
What is direct deposit?
An electronic deposit of funds into your bank account
When someone drops rocks on your head
When you deposit a check into your bank account
A way for companies to hold onto your money longer
4
If you're denied credit, HOW LONG long does the credit have to provide specific denial reasons?
60 days
45 days
15 day
30 days
5
Your credit report accounts for all of the following EXCEPT . . .
Savings and investments
Paying bills by their due date
Outstanding debt
The age of your accounts
6
What is a good rule of thumb for the amount of your net income that you should save?
25%
10%
20%
5%
7
Which of the following factors DO NOT strongly affect your credit rating?
Whether you are close to your credit limits
Whether you pay bills on time
Whether you are married or not
Whether you have applied for credit lately
8
Compound interest is better than simple interest BECAUSE . . .
It adds interest to principal at the END of the time period
It adds interest to the principal OVER the time period
It pounds the interest and principal together
It is more complicated