Financial Literacy LOYO I #2

Question 1

2. What is the ONE thing you WOULD NOT need to use a check and instead could use a debit card?

Accepted Answer

Buying a pair of jeans

Question 2

Which type of savings account pays you the highest interest and you can withdraw your money when needed?

Accepted Answer

Money Market Account

Question 3

1. Complete this sentence: A checking account allows you to spend money without having to carry __________.

Accepted Answer

Cash

Question 4

T or F: A Certificate of Deposit (CD) is a type of savings account.

Accepted Answer

True

Question 5

T or F: The longer you take to repay a loan, the more interest you pay.

Accepted Answer

True

Question 6

Which type of savings account requires that you have a large initial deposit to open it up?

Accepted Answer

Money Market Account

Question 7

T or F: The FAFSA is based on the income you make each year.

Accepted Answer

True

Question 8

T or F: All loans are secured with collateral.

Accepted Answer

False

Question 9

T or F: The longer you take to repay a loan, the bigger your monthly payment.

Accepted Answer

False

Question 10

Which type of savings account allows you to have a small initial deposit to open it up?

Accepted Answer

Regular Savings Account

Question 11

What is NOT an example of collateral for a loan?

Accepted Answer

The money you own in your checking account

Question 12

Which type of savings account doesn't allow you to withdraw your money for a set amount of time?

Accepted Answer

Certificate of Deposit (CD) Account

Question 13

T or F: A Money Market Account (MMA) is a type of savings account.

Accepted Answer

True

Question 14

T or F: You only need to apply for the FAFSA in the fall of your senior year (12th grade) to secure money for college.

Accepted Answer

False

Question 15

3. Lynda wrote a check for $100.00 but only had a balance of $75. What will happen to her checking account?

Accepted Answer

Her account will have a negative balance and an overdraft fee.

Question 16

If you were a server and made most of your money with tips, which budget method would be best?

Accepted Answer

Envelope method

Question 17

What does FAFSA stand for?

Accepted Answer

Free Application for Federal Student Aid

Question 18

Regarding a loan, what is collateral?

Accepted Answer

Something you would give the lender if you didn't pay the money back

Questions 18