Personal Finance Final

Front

What is a bank statement?

Back

A monthly document prepared by your financial institution which shows all of the transactions related to your account.

Front

A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check is known as a:

Back

Debit Card

Front

An automatic electronic deposit of net pay to an employee's designated bank account is known as:

Back

Direct Deposit

Front

How does overdraft protection work?

Back

You will likely be charged an overdraft fee for EACH transaction you make after your account reaches zero.

Front

How is the 50-20-30 Rule used correctly?

Back

50% needs/expenses, 20% savings, 30% wants

Front

A bank that is FDIC insured means that:

Back

Insures customer deposits if a bank fails up to $250,000 per individual depositor.

Front

Why is it important to have an emergency fund?

Back

To have money set aside for unanticipated expenses or loss of income.

Front

What is a CREDIT CARD?

Back

A card issued by a financial company giving the holder an option to borrow funds.

Front

What makes up the total payment of a loan? Options: Principal + Term + Interst, Interest + Deductible + Tern, Principal + Down Payment, Interest + Expenses

Back

Principal + Term + Interst

Front

What is the difference between a VARIABLE RATE and a FIXED RATE in terms of interest rates on loans?

Back

A FIXED RATE will stay the same for the life of the loan; a VARIABLE RATE will change throughout the life of the loan.