Unit 3 Principles of Money End of Unit Exam

Front

How does cashback work on a credit card?

Back

It gives you a percentage of your purchase amount back.

Front

What is the main purpose of a checkbook transaction register?

Back

To record all transactions in your checking account

Front

If you have $100 in your checking account and you write a check for $150, what financial term describes this situation?

Back

Overdraft

Front

What is the purpose of an annual fee on a credit card?

Back

To cover the cost of maintaining the credit card account

Front

Which of the following is NOT considered a form of electronic funds transfer (EFT)?
Direct deposit, Online bill payment, Writing a check, Transferring funds between accounts online

Back

Writing a check

Front

Which of the following best describes a prepaid card? A card that automatically deducts money from your checking account, A card that you can load money onto and use like cash, A card that offers rewards for purchases, A card that requires an annual fee

Back

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

Front

What is the primary advantage of using money over bartering in trade?

Back

Money is a universal measure of value.

Front

Which of the following is a characteristic of cash? It is only available in digital form., It can be easily lost or stolen., It requires a PIN for transactions., It is not widely accepted.

Back

It can be easily lost or stolen.

Front

Which of the following statements about electronic banking is true?
Options:
It is only available during bank hours.
It allows you to manage your money online 24/7.
It requires physical cash for transactions.
It does not allow fund transfers between accounts.

Back

It allows you to manage your money online 24/7.

Front

What is a common feature of a rewards program on a credit card?

Back

It offers points or miles that can be redeemed for travel or merchandise.