Budget, Debt, and Risks 51B-D

Budget, Debt, and Risks 51B-D

Multiple Choice

What is the best way to manage credit and debt?

• use rewards

• spend now worry later

• Make big purchases

• set goals and budget

Multiple Choice

Something unnecessary but desired. An item which increases the quality of life (video games, DVD's, etc.)

• surplus

• want

• need

• deficit

Multiple Choice

Money that you spend is called a(n)___.

• expense

• income

• debt

• profit

Multiple Choice

A ______ account is a great place to store your money so you can continue to grow it and not spend it.

• Checking

• Savings

• 401K

• 503C

Multiple Choice

I have been setting aside $100 a month for my children to have money to go to college. This idea is known as what? 

• savings 
• credit 
• income 
• debt 

Multiple Choice

Why is it more difficult to get out of debt when only paying the minimum payment?

• Your credit limit always resets, so you have a lot of spending power each month.

• Your entire minimum payment goes toward principal and the interest continues to compound.

• The majority of your minimum payment is going toward interest and finance charges and only a small amount toward the principal.

Multiple Choice

What is debt?

• Another word for death

• Something, typically money, that is owed or due

• A loan on which you do not have to pay interest

• That which is incurred during childhood and consummated in college

Multiple Choice

A credit card is

• Pre-approved credit which can be used for the purchase of goods and services now and payment of them later
• Credit which must be repaid in a series of equal payments
• A plastic card that is electronically connected to the cardholder's bank account
• None of the above