PFHS Unit 3.02 Financial Literacy

Why is saving important?

• because the future is unpredictable

• because people need to buy goods and services to grow the economy

• because protecting assets such as a house and vehicles is critical in case of accidents

• because people need to support local banks and credit unions

In which category are a new car, designer clothes, and gaming systems?

• wants

• needs

• values

• income

When Miranda opened her credit card bill, she was suprised to see that the amount she owed was more than the cost of the things she had purchased. What is the probable cause of this difference?

• credit

• debit

• interest

• equity

Sally is excited about her new job. The salary she was quoted for the position does not have deductions taken out of the amount. What type of income was Sally quoted to earn?

• gross income

• net income

• hourly income

• weekly income

Samantha is looking for an institution for her money management. She is looking for an account that pays interest on deposits, does not have check writing privileges, and has easy withdrawal access on demand. Which type of account would be best for Samantha?

• checking account

• certificate of deposit

• savings account

• mortgage

The newlyweds wanted to start their marriage being financially responsible. What tool could they use to keep track of where their money is going?

• spending plan

• income

• expenses

• savings account

Which method of payment most likely requires a personal identification number (PIN) to confirm electornic transfer of funds from an account?

• credit card

• debit card

• cash

• check

Credit Union, Savings and Loan Institution and Commercial Banks are examples of:

• Saving Accounts

• Checking Accounts

• Depository Institutions

• Banks

True/False: Keeping track of charges by keeping receipts is not necessary because they send you a statement every month.

• True

• False

Which of the following is the most popular type of depository institution:

• Credit Union

• Savings and Loan Institution

• Commercial Banks