Personal Finance Test

Front

What is a checking account?

Back

A checking account is a type of bank account that allows you to deposit money, withdraw funds, and write checks to make payments without carrying cash.

Front

What is the benefit of using a checking account?

Back

It helps you spend money without carrying cash.

Front

How can you ensure you are getting the best deal when shopping online?

Back

By comparing prices across multiple websites.

Front

What does it mean to be an informed consumer?

Back

Being an informed consumer means understanding products and services to get the most value for your money.

Front

What is the overtime pay rate for an employee earning $24 per hour?

Back

$36 per hour (1.5 times the regular hourly rate).

Front

If you have $387.56 in your checking account and write a check for $175, what is your new balance?

Back

$212.56.

Front

What is the importance of budgeting in personal finance?

Back

Budgeting helps you plan your spending and saving, ensuring you live within your means.

Front

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

Back

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

Front

What is interest in the context of savings accounts?

Back

Interest is the money earned on your savings, typically calculated as a percentage of the account balance.

Front

What is the purpose of an emergency fund?

Back

An emergency fund is savings set aside to cover unexpected expenses or financial emergencies.