12th Grade: Economics Part 2 Review

The highest loan rates usually occur when borrowing from a:

• Bank

• Credit-Card Company

• Pawnshop

• Credit Union

A ________ is used to add funds to a bank account.

• Check

• Deposit slip

• Signature card

• Withdrawal slip

Obtaining cash from an ATM is similar to:

• Writing a check

• Making a deposit

• Opening a new account

• Earning interest on your account

A service charge on your bank statement will result in:

• a higher balance

• a lower balance

• earning more interest

• more outstanding checks

A common advantage of using credit is:

• less impulse buying

• lower cost for items purchased

• ability to obtain needed items now

• lower chance of overspending

A person's regular income is referred to as:

• Character

• Capital

• Collateral

• Capacity

To build a credit history, a person could:

• establish a steady employment record

• file his or her federal income taxes on time

• use an ATM several times a month

• request to view her or his credit file

Utility companies and medical service organizations commonly offer ________ credit.

• revolving

• single-payment

• installment

• retail

Using the 20-10 rule, a person earning $1,500 a month should not have monthly credit payments that exceed:

• $300

• $150

• $20

• $30

A credit card issued through a credit union would be an example of a _________ card.

• bank

• travel and entertainment

• store

• proprietary