Financial Literacy Midterm Review

Front

How can a cardholder avoid paying interest on a credit card?

Back

Pay the balance in full every month

Front

What is gross pay?

Back

The amount of money before deductions.

Front

What is the difference between gross and net pay?

Back

Gross pay is before taxes and deductions are subtracted; net pay is your take-home pay.

Front

An agency of the federal government that insures bank deposits up to $250,000 is the

Back

FDIC

Front

One way to deposit to my account is

Back

using the mobile app to take a picture of the front and back of a check

Front

What is one danger to "Keeping Up with the Joneses"?

Back

People can become obsessed with physical or economic gains.

Front

You are at the checkout counter at the local supermarket and use your DEBIT card to pay for your groceries. Where does the money for this purchase come from?

Back

It is deducted directly from your checking account

Front

What should Tami consider when creating a strong password for her online banking account?

Back

She should use at least one capital letter, one number, one symbol and it should be at least 8 characters long.

Front

What does the n stand for in this formula?

Back

The number of times compounded per year

Front

Daniel puts $80,000 in an account that earns 6% interest compounded annually. What is the ending balance after 15 years?

Back

$191,724.66