Personal Financial Literacy

Avery is a waitress who does online banking. She rarely writes checks but uses a debit card at least twice a day. What type of features will she not need from a financial institution?

• Free debit card

• Free debit card usage

• Free checks

• Free online banking

Aliyana is a retired nurse. She does not use a debit card but writes many checks. She does online banking and transfers money from her savings account to her checking account twice a month. Aliyana's bank is one of the four financial institutions described. Which most likely is Aliyana's bank?

• Bank 1

• Bank 2

• Bank 3

• Bank 4

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 credit card because it can withdraw money from a bank account as purchases are made.

• 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.

What happens to a bank account when a deposit is made?

• The bank balance increases.

• The bank balance decreases.

• The bank balance stays the same.

• None of the above.

What mathematical operation is used in a check register when a withdrawal is made?

• addition

• subtraction

• multiplication

• division

• some other really cool operation we haven't learned yet

Based on the transactions recorded in the check register, what would be the ending bank balance?

• $60.95

• $160.95

• $240.95

• $150.95

Which of the following does not describe a reason for establishing a good credit history?

• It helps you get a better interest rate on a loan.

• It helps a lender determine if you are eligible for a loan.

• It makes your resume look better.

• It allows you to have a higher credit limit on a credit card.

Which of the following does not describe a function of a credit report?

• It helps a lender determine if you are able to get a loan.

• It determines whether or not a person is issued a debit card.

• It helps a credit card company determine your credit limit.

• None of the above.

Ken says that the information on his credit report can be retained for only 1 year. Is Ken correct?

• Yes, because the consumer chooses how long credit report information is retained.

• No, because most credit report information is retained for 7 years.

• Yes, because most credit information is updated monthly.

• No, because all credit report information is retained indefinitely.

Victoria is learning about credit reports in school. She is becoming acquainted with the types of information contained in reports. Which of the following information is not found in credit reports?

• Diplomas earned

• Amounts owed

• Credit types

• Payment history