Unit 3 Principles of Money Exam

Front

How does an electronic banking transfer differ from using cash?

Back

It allows online management of funds

Front

If you need to withdraw cash to buy a snack, which of the following would you use? A credit card, An ATM, A checkbook, A mobile phone

Back

An ATM

Front

What is the primary function of money?

Back

To serve as a medium of exchange

Front

Which of the following best describes an electronic funds transfer (EFT)? A method of printing money, A physical exchange of coins and bills, The electronic movement of money between accounts, A way to store cash at home

Back

The electronic movement of money between accounts

Front

Evaluate the following statement: "Cash is the most secure form of money because it cannot be lost or stolen."

Back

False, because cash can be easily lost or stolen

Front

If you want to keep track of all your transactions in your checking account, which tool would you use? Options: A savings account, A checkbook transaction register, A prepaid card, An overdraft protection plan

Back

A checkbook transaction register

Front

Evaluate the following statement: "Using a credit card with a high Annual Percentage Rate (APR) is beneficial if you plan to carry a balance over time."

Back

False, because a high APR means higher interest costs

Front

Which of the following best describes a prepaid card? A card that allows you to borrow money from the bank, A card that you can load money onto and use like cash, A card that earns interest over time, A card that is linked directly to your checking account

Back

A card that you can load money onto and use like cash

Front

What is an overdraft?

Back

Spending more money than you have in your checking account

Front

What is the maximum amount of money you can borrow on your credit card called?

Back

Credit Limit