Personal Financial Literacy

Question 1

Unwise use of credit can have a negative effect on your quality of life.

Accepted Answer

TRUE

Question 2

John has a score of 560. He will probably qualify for LOW int. rates when taking out a loan.

Accepted Answer

False

Question 3

Ceating her budget, Ann realizes that her expenses exceed her income. Ann should immediately

Accepted Answer

reduce or eliminate some expenses

Question 4

How long will negative actions remain on your credit history?

Accepted Answer

7 years

Question 5

If your credit score is low, you can borrow money at a lower interest rate.

Accepted Answer

FALSE

Question 6

Credit or Debit? Has a credit limit

Accepted Answer

Credit

Question 7

Credit or Debit? You are limited to the money in your account

Accepted Answer

Debit

Question 8

Which of these options WILL NOT subtract money from an account?

Accepted Answer

Deposit

Question 9

Detailed report of your credit history prepared by a company and used by a lender to determine

Accepted Answer

Credit Report

Question 10

What part of a check is the LEAST important?

Accepted Answer

Memo Line

Question 11

Credit or Debit? High interest rates

Accepted Answer

Credit

Question 12

Purchases made with your debit card are usually:

Accepted Answer

Deducted immediately from your checking account

Question 13

Credit or Debit? Purchases are withdrawn immediately from the account.

Accepted Answer

Debit

Question 14

Financial planning helps individuals to:

Accepted Answer

have strategies for saving and investing

Question 15

A cash advance on a credit card

Accepted Answer

is a way to get cash from a cards line of credit

Question 16

Your credit report does not affect your ability to borrow money.

Accepted Answer

False

Question 17

The BEST suggestion you gave a friend who is writing a check for the first time is:

Accepted Answer

Use the check register to keep a record of purchases

Question 18

Which statement is false regarding a credit report?

Accepted Answer

a credit report is the same as a credit score

Question 19

What is a draw back to using a credit card?

Accepted Answer

Interest rates

Question 20

You will want to wait until your late twenties to establish your credit worthiness.

Accepted Answer

FALSE

Question 21

The lowest amount of money shown on your credit card bill that must be paid every month is...

Accepted Answer

Minimum payment

Question 22

Overspending is not easy using a credit card.

Accepted Answer

False

Question 23

All of the following are advantages of using credit card to make purchases instead of cash EXC.

Accepted Answer

you can easily lose track of how much money you have spent

Question 24

What is a credit score?

Accepted Answer

A # used to determine how much credit to extend to a person

Question 25

What is the range of a credit score?

Accepted Answer

300-850

Question 26

Which of the following is not an advantage when using credit?

Accepted Answer

The opportunity cost of paying interest on interest

Question 27

The phrase used for putting money into a savings account is:

Accepted Answer

Making a deposit

Question 28

How can a cardholder avoid paying interest on a credit card?

Accepted Answer

Pay the balance in full every month.

Question 29

Reasons for making a budget include:

Accepted Answer

All of the above choices are correct.

Question 30

Credit or Debit? Acts as a "loan" from the company or bank

Accepted Answer

Credit

Question 31

Credit or Debit? Use use a pin at checkout.

Accepted Answer

Debit

Question 32

Credit can make it possible for you to spend more than you earn.

Accepted Answer

True

Question 33

A checking account is:

Accepted Answer

An account where money can easily be deposited and withdrawn

Question 34

Mallory's credit limit is $5,000 and her outstanding balance is $2,700, how much avail. credit?

Accepted Answer

2,300

Question 35

Credit or Debit? Cash back is allowed at merchants.

Accepted Answer

Debit

Question 36

Interest can be defined as:

Accepted Answer

the amount owed for borrowing money

Question 37

Which action will raise your credit score?

Accepted Answer

Paying bills on time.

Personal Financial Literacy

Questions 37

Personal Financial Literacy

Questions 37