What is one advantage of having a credit card?

It allows you to make purchases without carrying lots of cash

Why would your credit provider give you a credit limit?

to prevent you from spending more money than you can pay back

How is charging a purchase like getting a loan?

You borrow money from your credit provider in order to pay the store

What is likely to happen if the price of a new pair of sneakers went up?

Demand for the sneakers would decrease

What is the best way to avoid credit card debt? Choose the best answer.

Don't spend more money than you have

What happens when you don't have enough money to pay for the things you charged?

You end up owing more than the original amount of money you charged

What might happen if the demand for a new type of sneaker began rising quickly?

The sneaker company would raise the price of the sneakers

How do credit card companies make money?

by charging late fees and interest to their customers

Why do the prices go down when consumers start saving their money?

Consumers become less willing to spend money on goods and services

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Hester - Financial Literacy

20 termsStudBud Administration179 plays

Unit 1 - Test 1 Biztown

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Questions 20

Answers

1
What is one advantage of having a credit card?
It encourages you to budget your money wisely
It allows you to make purchases without carrying lots of cash
It helps you pay off any debts that you may have
It prevents you from spending more than you earn.
2
When supply increases and demand decreases the result is that the price will go down.
True
False
3
Which condition would lead to the highest price?
high supply, low demand
low supply, low demand
high supply, high demand
low supply, high demand
4
Why would your credit provider give you a credit limit?
to prevent you from shopping in certain places
to remind you to pay your bill on time
to prevent you from enjoying the things you buy
to prevent you from spending more money than you can pay back
5
A system in which money is earned, exchanged for goods.
economy
supply
credit
installment plan
6
The amount of goods and services that consumers are willing and able to buy.
supply
demand
installment plan
credit
7
Which of these is neither a good or a service?
a meal at a restaurant
a piano lesson
a $20 bill
a gallon of gasoline
8
A credit system where payment for merchandise is made in small amounts over time.
credit
demand
installment plan
economy
9
How is charging a purchase like getting a loan?
You borrow money from your credit provider in order to pay the store
You borrow the money from an ATM in order to pay your credit provider
You borrow money from a bank in order to pay off your credit card
You borrow the money from the store in order to pay the credit provider
10
Easy credit can encourage people to make purchases they can't pay off.
False
True
11
According to the laws of supply and demand, when will companies produce more of a product?
When demand increases
When they can sell it for a higher price
When the economy turns downward
When the price people will pay for it goes down
12
When a person organizes and operates a business of their choice.
supply
installment plan
credit
entrepreneurship
13
What is likely to happen if the price of a new pair of sneakers went up?
Demand for the sneakers would increase
Merchants would begin offering sales on the sneakers
Demand for the sneakers would decrease
It would be impossible to find a pair in stores
14
What is the best way to avoid credit card debt? Choose the best answer.
Use several credit cards, to avoid putting too much money on one card
only use credit cards to buy things that you really want
Don't spend more money than you have
Pay only the minimum amount each month
15
What happens when you don't have enough money to pay for the things you charged?
owe the same amount of money you charged, it just takes a while to pay off
You end up owing less than the original amount of money you charged
You end up owing more than the original amount of money you charged
The items you charge become the property of the US government
16
What might happen if the demand for a new type of sneaker began rising quickly?
People would refuse to pay more money for the sneakers
The sneaker company would lower the price of the sneakers
The manufacturer would begin making fewer sneakers
The sneaker company would raise the price of the sneakers
17
Money owed, usually as a result of borrowing
credit
entrepreneurship
Economy
demand
18
How do credit card companies make money?
by making consumers pay an extra dollar on every purchase
by charging late fees and interest to their customers
by charging late fees and interest to stores and other businesses
by earning interest on the money they have saved up
19
Why do the prices go down when consumers start saving their money?
Demand for goods begins to outpace supply
Manufacturers start producing fewer products
Demand for currency goes up as people begin saving
Consumers become less willing to spend money on goods and services
20
The total amount of a specific good or service that is available to consumers.
supply
economy
demand
credit

Hester - Financial Literacy Flashcards | StudBud