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Financial Literacy Review Flashcards | StudBud
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Financial Literacy Review
Financial Literacy Review
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1
The purpose of the Federal Deposit Insurance Corporation (FDIC) was to...
inspect the financial transactions of important businesses
increase governmental control over the economy
ensure Americans in poverty had money when they retired
insure bank depoists of individual citizens
2
How can you protect your checking account when using online and mobile banking?
Connect to a secure WiFi network
Use a strong password
Opt-out of alerts to notify you of unusual activity
Share your pin # with only 1 person in case you forget it
3
Which type of loan usually has the lowest interest rate?
Payday loan
Credit card loan
Student loan from the government
Personal loan from a private lender
4
Define Direct Deposit
a set amount for each hour employee works
receiving 24 paychecks per year
Paycheck automatically deposited electronically bank account
pay day fall on the same day of the week
5
What qualifies as needs for budgeting?
iPhone X
Food
Electricity
Water
6
Your ___________________ _______________ helps determine whether or not you get credit.
Hourly Wage
Credit Score
Annual Salary
Years Worked
7
Credit cards are directly linked to your bank account
false
true
8
How much money is insured by the FDIC?
$150,000
$200,000
$1,000,000
$250,000
9
An excellent credit score would be
740-799
800-850
300-579
10
What is a credit score?
Number that you use to project future earnings
Number that represents how well you pay your bills
Number that is used to process your credit findings
11
The best advice for managing your credit card debt is to:
Make only the minimum monthly payments
Cease all payments and hide from your creditors
Pay off the highest interest debts first
File for bankruptcy
12
What happens if you miss multiple loan payments?
The loan will be forgiven
You won’t be allowed to borrow ever again
It may negatively affect your credit score
Your interest rate will automatically go down
13
Joe moved money from his checkings to savings account. What type of transaction did he make?
Deposit
Withdrawal
Transfer
Interest
14
Which of the following does NOT contribute to your credit score?
Your debt-to-credit ratio
Your payment history
Length of credit history
Which banks issued your credit cards
15
What is the first step of the budgeting process?
make changes to the budget if neccesary
List expenses in order of importance
record income for the budgeted time
write down an estimated cost
16
What is the principal of a loan?
The monthly payment amount
The total amount of interest you will pay over time
The original amount of money borrowed
The loan's due date
17
A shorter auto loan term means ____ monthly payments & ____ total interest you'll pay.
higher, less
lower, less
lower, more
higher, more
18
A checking account is best used for...
Saving money
Storing money to spend
Placing money you earn
Investing money
19
What is budgeting?
Financial management
All of the above
Tracking income and expenditure
A financial plan
20
When you use a credit card, you
buy now, pay later
buy now, pay now
pay in cash
pay interest on purchases
21
Wants, needs, and ______________________ contribute to the financial decisions you make.
football
values
school
money
22
The biggest difference between a debit card and a credit card is:
A debit card doesn't proves you are responsible with money
You can't make online purchases with a debit card
A debit card can't be used to rent cars
A debit card only allows you to use money you already have
