Final Exam Financial Literacy

Front

Why is it a good idea to treat your savings account as a fixed expense each month?

Back

Money can be deposited before it is used for discretionary spending.

Front

Banks and lenders use credit scores to determine . . .

Back

The likelihood that someone is able to repay debt

Front

What does it mean to use a secure credit card?

Back

You can only charge up to what has already been pre-paid on the card.

Front

Which of the following entities do NOT have access to your credit report? Banks who are considering loaning you money, Credit card companies who are considering giving you an account, Potential employers who are looking for new employees with good credit, Potential landlords who may rent you an apartment or house

Back

Potential employers who are looking for new employees with good credit

Front

Which of the following is the first step you should take if your identity is stolen? Options: Contact the police to file a report, Contact the fraud departments at all three major credit agencies, Contact the bank and credit card companies where you hold accounts, Contact your parents

Back

Contact the bank and credit card companies where you hold accounts

Front

You have three short-term goals for the end of the school year which include: going to the lake with your friends, which will cost $200; putting a deposit on an apartment, which will cost $350; and putting a down payment on a motorcycle for $150. How should you achieve these goals?

Back

Save money each month for the next year

Front

The location of which of the following is important when considering a bank? ATMs, Headquarters, Vault, Bank employees’ homes

Back

ATMs

Front

Checks or debit purchases you have made, but do not show up on your bank statement, are referred to as which of the following? Non-reconciled, Outstanding, Cleared, Completed

Back

Outstanding

Front

Why do stores intentionally put small and inexpensive items near the checkout lines?

Back

So shoppers will buy them without much thought.

Front

Which of the following types of goals best describes something you can achieve in more than five years? Short-term goals, Intermediate goals, Long-term goals, Future goals

Back

Long-term goals