Personal Finance and Decision-Making Flashcard

Front

What document must you file in order to qualify for federal financial aid?

Back

FAFSA

Front

When making a decision about what you will do after high school, what should you do? Fill in the blank: Collect data and use a _______ decision-making model to weigh the alternatives.

Back

rational

Front

Which section of a pay stub will provide the total amount deposited in a checking account from the pay period?

Back

net pay

Front

This budgeting system is based on percentages, with the largest category for needs, the second largest for wants, and the smallest for savings. Fill in the blank: This is known as the _______ budgeting system.

Back

50/30/20

Front

A progressive tax is one where individuals with higher incomes pay ______.

Back

larger share of their income than do those with low incomes

Front

In which of the following situations might it be best to pay with a debit card? When renting a car or purchasing airline tickets., When making everyday purchases at the grocery store or coffee shop., When paying for a service, such as lawn service, a haircut, or leaving a tip at a restaurant., When making a purchase at a yard sale.

Back

When making everyday purchases at the grocery store or coffee shop.

Front

Choose the statement about prepaid cards that is FALSE: a. Prepaid cards typically include a lot of fees. b. Prepaid cards are a useful option for someone who is unbanked to make online purchases. c. Prepaid cards are a great way to build credit. d. Prepaid cards are usually accepted everywhere that debit and credit cards are accepted.

Back

Prepaid cards are a great way to build credit.

Front

Fill in the blank: One of the three basic functions of money is a _______.

Back

store of value

Front

What is the Rule of 72?

Back

It is a way to calculate how long it will take for an investment to double given a fixed annual rate of interest.

Front

Fill in the blank: A high credit rating will result in a ______ interest rate because the risk of default on the loan is greater.

Back

higher