Personal Financial Literacy Review

Front

What is a credit history?

Back

A record of a person's borrowing and repayment activities, used by banks to assess creditworthiness.

Front

True or False: A negative credit history can help you get a loan.

Back

False

Front

What are transactions in banking?

Back

The actions of depositing and withdrawing money from a financial account.

Front

What is a fixed expense?

Back

A cost that does not vary from month to month, such as rent or a mortgage.

Front

How do you calculate the difference in earnings over time?

Back

Subtract the lower income from the higher income and multiply by the number of years.

Front

What is a debit card?

Back

A plastic payment card linked to a financial account used for transactions.

Front

What is a credit card?

Back

A plastic card that allows you to borrow money up to a certain limit to make purchases.

Front

What is the purpose of saving money?

Back

To set aside a portion of income for future use or emergencies.

Front

What is a budget?

Back

A plan that outlines expected income and expenses over a specific period.

Front

What is the difference between a checking account and a savings account?

Back

A checking account is used for daily transactions, while a savings account is used to save money and earn interest.