Personal and Financial Literacy 1

A Debit Card and A Credit card are the same thing. 

• True
• False

A Debit Card is linked directly to a bank account, and money is immediately subtracted when you use it. 

• True
• False 

To withdrawal is to add money to an account. 

• True 
• False

To deposit is to add money into an account. 

• True
• False

What forms of College payment has to be paid back?

• All of it. 
• grants and scholarships only
• Student loans

John is deciding whether to use a debit card or a credit card to purchase a $50 remote control helicopter. Which statement correctly explains which card John should use to make his purchase?

• He should use a credit card because it withdraws the money from his bank account automatically.
• He should use a debit card because it is used like cash or checks.
• He should use a debit card because it is used like a personal short-term loan.

Which action is not a way to establish a positive credit history?

• Making payments on time
• Paying for all purchases with cash
• Paying off a loan before it is due
• Paying the required monthly amount on a loan

Next year, Richard is getting a student loan to pay for college. Which statement best describes a student loan?

• Borrowed money that must be paid back with interest
• Money that is awarded to students usually based on need with no obligation to repay
• A bank account in which a person's money earns interest
• Money that is awarded to students based on educational achievement with no obligation to repay

Susanne is going to college and was informed that she will get a grant to pay for her tuition. Which statement describes a grant?

• Money that a student receives in exchange for work
  
• Money that a student must pay back when he or she graduates
  
• Money that a student has started saving well before the start of college
  
• Money that a student receives based on need and does not need to pay back

A credit card is a plastic payment card you can use to purchase goods or services. Using a credit card is like getting a loan.

• True
• False