Semester 1 Practice Final

Front

What is a credit score?

Back

A credit score is an indicator of how well someone pays off their debt, not how well they handle money.

Front

What do credit card commercials often omit?

Back

They often do not show people making payments for months or years on those credit card purchases.

Front

What does the debt snowball method involve?

Back

The debt snowball method involves paying off debts from smallest to largest.

Front

What are withholdings?

Back

Withholdings are the portion of an employee’s pay held back to cover taxes and other deductions.

Front

What is irregular income?

Back

Irregular income is income that comes in at different amounts or at different times, or both.

Front

Why is it important to understand credit scores?

Back

Understanding credit scores is crucial for managing debt and obtaining loans.

Front

What is the impact of high credit card debt on credit scores?

Back

High credit card debt can negatively impact credit scores, making it harder to obtain loans.

Front

What is the difference between wages and salary?

Back

Wages are typically paid hourly, while salary is a fixed amount paid over a year.

Front

What is deficit spending?

Back

Deficit spending occurs when expenses exceed revenue, leading to borrowing.

Front

What is a zero-based budget?

Back

A zero-based budget is a budgeting method where every dollar is allocated to specific expenses, resulting in a net balance of zero.