Personal Finance Unit 6 & 7 Review

Who pays taxes?

• Most people who have a job.

• Most people who purchase items.

• Most people who own property.

• All of the above.

What is the purpose of taxes?

• improve roads

• support government

• pay retirement benefits

• all of the above

Identify the INCORRECT statement.

• A debit card allows for an immediate electronic transfer of money from a cardholder's savings or checking account

• A debit card is essentially a paper check but does not require the processing time a check does.

• A debit card is handy in an emergency when you do not have the money to spend.

• A debit card is a pay-now payment type with no grace period for payments.

When lenders lend money to borrowers, they charge an additional fee for the use of their money. What is this fee called?

• Debit

• Stock

• Interest

• Credit

Jason went to the grocery store to buy a gallon of milk for his mother. While waiting in the checkout line, he saw a display for a new chocolate-caramel candy bar, so he bought it, too. The candy bar purchase is an example of a/an:

• Special treat

• Impulse buy

• Need

• Payment for running an errand for his mom

David wants to buy a new car that costs $23,899, but only has $6,000 in cash. Since the car costs more than the amount of money he has, David must get a loan from a bank and pay interest on the remaining balance that he owes. Which personal money management term is explained in this example?

• income

• debt

• saving

• investing

A record of the borrower’s past loan and credit‐related

transactions.

• Lender

• Credit History

• Credit Report

• Closed‐end Credit

When goods, services, and/or money is received in

exchange for a promise to pay back a definite sum of money at a future date.

• Tax Lien

• Open‐end Credit

• Credit

• Closed‐end Credit

A person or organization who makes funds available to

borrow.

• Lender

• Credit History

• Credit Report

• Closed‐end Credit

Maintaining a reasonable amount of unused credit will create

• Negative Credit

• Positive credit