Module 3

Which of the following is NOT an income?

• Your annual salary

• Your monthly student loan payment

• Your stipend received as part of an internship

• Your wages earned during a work shift

Amy's new summer job at the pool will pay her $9/hour. Which term describes this type of hourly income?

• Salary

• Stipend

• Wage

• Benefit

A ________________ is usually paid on a biweekly or monthly basis for professional employment.

• Salary

• Stipend

• Wage

• Benefit

What is state income tax?

• The tax you pay to state or local government when purchasing an item.

• The tax paid to the state government where you live or work based on your income.

• The tax that pays for healthcare for people ages 65 and older

• The tax paid to the federal government based on your income.

Which of the following statements is TRUE:

• Applying for several lines of credit in a short period of time can help boost a person’s credit score.

• Paying off a credit card balance in full can have a negative impact on someone’s credit score.

• The longer you use credit responsibly, the higher your credit score.

• Low risk borrowers tend to have low credit scores.

Which factor has the biggest impact on a credit score?

• Consistently making your payments on time

• The credit card company you use

• How much you charge on your credit card

• The types of items you purchase with your credit card

Ashley wants to make a purchase using the money in her checking account. What method of payment should she use to instantly and directly access these funds?

• Credit card

• Debit card

• Direct Deposit

• Prepaid Card

True or False: Payday loans tend to have higher interest rates and fees, making them difficult to pay back over time.

• True

• False

What is the best strategy for avoiding credit card interest?

• Pay the full balance each month

• Skip payments

• Pay the minimum balance

• Make payments online

Which of the following is the best reason to use cash for purchases?

• Getting more from the ATM is easy to do

• Keeping track of how much you have spent is simple

• Splitting bills with friends is easier

• Losing it won’t be a big deal