Financial Literacy Review

Which of the following is an advantage of using credit cards?

• If the cardholder forgets to pay the bill, there is no interest on purchases.

• Money is withdrawn from the cardholder’s bank account immediately after the purchase is made.

• If the card is stolen, the cardholder may not be responsible for the purchases.

• The cardholder does not need to keep track of purchases being made.

The table shows the monthly fee for the checking accounts at two banks.

Which statement is TRUE?

• The fee at Main Bank will always be more than the fee at First State Bank.

• The fee at Main Bank will always be less than the fee at First State Bank.

• The fee at Main Bank will be more than the fee at First State Bank only when a customer’s balance is less than $500.

• The fee at Main Bank will be more than the fee at First State Bank when a customer’s balance is more than $500.

Tags

CCSS.8.F.A.2

CCSS.HSF.IF.C.9

Which of the following is true of a purchase made with a debit card?

• The customer signs his name in order to make a purchase.

• The customer must pay interest on the purchase.

• The customer will receive a bill for the purchase.

• The customer enters a PIN number in order to make a purchase.

Jason has a balance of $530.50. What is his balance by 26th October? _____________

• $457

• $457.25

• $604

• $604.25

Tags

CCSS.7.NS.A.3

Credit cards, when used responsibly, can provide benefits for its consumers. Which statement below describes a benefit for a consumer using a credit card?

• A credit card company will allow you to buy now and pay back your debt when you are ready.

• A credit card doesn’t cost you any more money than using a debit card as long as you make minimum payments

• People that use credit cards become wealthy more quickly.

• Using a credit card responsibly and paying the balance off each month can help improve your credit score.

Which of the following does NOT describe a function of a credit report?

• It helps a lender determine if you are able to get a loan.

• It determines whether or not a person is issued a debit card.

• It helps a credit card company determine your credit limit.

• none of the above

A credit score is a number appearing on a credit report that represents a person’s credit-worthiness. Which of the following is true about a person’s credit score?

• Having no credit history impacts positively on a person’s credit score.

• Having a credit card that is maxed out increases a person’s credit score.

• Payment history is an important factor in determining a person’s credit score

• Bankruptcy does not affect a person’s credit score.

To help cover the cost of his college, William also applied and was successfully given a grant. What may be an advantage of getting a grant?

• William may have to repay the money after he completes his education.

• He may have to pay interest on the money he borrows.

• He does not have to repay the money

• He does have to submit reasons for not repaying the money.

Tags

CCSS.RL.5.3

CCSS.RL.6.3

CCSS.RL.7.3

CCSS.RL.8.3

CCSS.RL.9-10.3

Maryann wants to attend a two-year college with an annual tuition of $4,250. She has $1,750 in savings and earned a work-study for $2,000 per year. How much more does Maryann need to pay for the tuition for both years?

• $1,500

• $2,750

• $2,500

• $3,750

Michael spent $8.00 of the $20.00 on a CD tape. What decimal represents the fraction of the $20 Michael spent?

• 8.20

• 0.4

• 0.6

• 2.5