Financial Literacy Semester 1 Final Exam

Front

What is not included in an individual’s credit report?

Back

Medical information is not included in an individual’s credit report.

Front

What is a benefit of taking out a loan with a cosigner?

Back

You gain access to loans you might not have been approved for on your own.

Front

Which statement is FALSE about using online and mobile banking?

Back

Online banking is the only way you can make online purchases.

Front

What is the formula for calculating the ending balance on a bank statement?

Back

Ending Balance = Previous Balance + Deposits - Withdrawals - Fees.

Front

What does FDIC Insurance provide?

Back

Protection for bank customers' deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business.

Front

What is a credit report?

Back

A credit report is a detailed account of an individual's credit history, including credit accounts, payment history, and credit inquiries.

Front

What is a cosigner?

Back

A cosigner is a person who agrees to take responsibility for a loan if the primary borrower fails to make payments.

Front

What is the purpose of a bank statement?

Back

A bank statement summarizes all transactions in an account over a specific period, including deposits, withdrawals, and fees.

Front

What is the impact of late payments on credit scores?

Back

Late payments can significantly lower an individual's credit score, affecting their ability to secure loans.

Front

What is the difference between a debit card and a credit card?

Back

A debit card withdraws money directly from a checking account, while a credit card allows borrowing up to a certain limit.