3.02 POFHS

Johnny is observed wearing a short sleeved shirt as he waits for the bus on a cold morning. A jacket for Johnny would be considered a:

• need.

• want

Why is saving important?

• because the future is unpredictable

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

An ability to borrow a limited amount of money on demand, small monthly payments, and no end date are characteristics of which money tool?

• debit card

• credit card

Fundamental beliefs or practices of personal importance should be placed in which category?

• values

• income

When Miranda opened her credit card bill, she was surprised 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?

• interest

• equity

Haley received a bonus and wants to deposit it in an account that allows limited withdrawals, but pays a higher interest rate. Which would be the best type of account for her to use?

• money market deposit account

• savings account

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

• credit card

• debit card

Marilyn believes that a portion of her income should go to charitable causes to help those less fortunate. This is an example of:

• values.

• needs

Darrell's paycheck has had the taxes and benefits deducted. His take home pay is referred to as:

• net income.

• gross income

When Greg received his first paycheck, he was surprised to see it was much lower than expected. He had not considered the regular deductions that would be taken out of his check. The amount Greg received is referred to as:

• net income

• weekly wage.