Personal Finance Review

Which of the following is accurate about a debit card?

• Debt cards take money directly from your checking account

• Debt cards take money directly from your saving account

• Debt cards allow you to make a purchase on credit and pay the company back later

• Debt cards are like gift cards - it's a prepaid amount of money that isn't withdrawn from any account or paid back later.

Which of follow is accurate about a credit card?

• Credit cards take money directly from your checking account

• Credit cards take money directly from your saving account

• Credit cards allow you to make a purchase on credit and pay the company back later

• Credit cards are like gift cards - it's a prepaid amount of money that isn't withdrawn from any account or paid back later.

Is there a way to use a debit card and not have money directly withdrawn from your saving account?

• Yes - you can hit the credit option while paying and the card provider will cover the cost in advance.

• Yes - you need a seperate pin number to indicate that you want to purchase the items on credit.

• No - this is just the way debit cards are. If you want to card company to pay in advance, you should get a credit card.

Dave Ramsey suggests that we have an Emergency Fund - which of the following is NOT considered a valid situation to dip into that fund?

• Loss of a job - need to pay bills

• Bad car accident - need to pay medical bills

• Landlord unexpectedly increases rent - need to pay rent

• HUGE sale on your dream car - need the extra money to be able to pay for your car in FULL

Which of the following is true of a checking account?

• Your credit card is linked to it

• Your debit card is linked to it

• Neither - no card is linked to a checking account

Which of the following is true of a savings account?

• Your credit card is linked to it

• Your debit card is linked to it

• Neither - no card is linked to a checking account

Taking money out of the account is referred to as a

• Deposit

• Withdraw

Putting money into the account is referred to as a

• Deposit

• Withdraw

All of the following are withdraws on your checking account except

• Use of a debit card

• Writing a check to pay your credit card bill

• Going to the ATM

• Use of a credit card

When you are overdrawn on your account you have a

• Deficit of money

• Surplus of money