Financial Literacy Final Exam Review

Front

What type of tax is applied to the purchase of goods and services?

Back

Sales tax

Front

What is a fixed expense?

Back

An expense that remains the same every month, such as a house payment.

Front

What is a savings account classified as?

Back

Asset

Front

Which payment method requires a PIN for transactions?

Back

Debit Card

Front

What is credit?

Back

Goods, services, or money received in exchange for a promise to pay a definite sum of money at a future date.

Front

What is a variable expense?

Back

An expense that can change from month to month, such as utility bills.

Front

What is the difference between an asset and a liability?

Back

An asset is something of value owned, while a liability is a debt or obligation.

Front

What is the purpose of a budget?

Back

To plan and track income and expenses.

Front

What is interest?

Back

The cost of borrowing money, usually expressed as a percentage.

Front

What is a credit score?

Back

A numerical representation of a person's creditworthiness.