Which statement best describes purchases made with a debit card?

• Purchases made with this card are subject to interest.

• Purchases made with this card can be paid over time.

• Purchases made with this card are withdrawn directly from a bank account.

• Purchases made with this card are subject to a credit limit.

What is one advantage of using a credit card over a debit card?

• Using a credit card never has an advantage over using a debit card. 
• Colleges may look at a person's credit history before accepting them into school.
• Apartment managers or landlords may look at a person's credit history before renting. 
• Using a credit card responsibly can build positive credit history. 

The “time value of money” means that...

• money paid out today has less value than if the money is paid out in the future.

• money received today is worth more than the same amount of money received in the future.

• the more time a person has to save, the lower the return on the money.

• the longer money is held, the less likely it will be spent.

An example of an opportunity cost is

• buying a dress at a sale price instead of paying the original price.

• using coupons when food shopping.

• buying concert tickets instead of buying a textbook for a course.

• using a credit card when making a large purchase.

How do banks use the money a person deposits into their savings account?

• The bank is able to use the money to earn profits.

• It is a requirement of the Federal Deposit Insurance Corporation (FDIC).

• It helps the bank invest in the local community.

• It is a benefit of having a bank credit card.

Which of the following would be considered an asset?

• Certificate of Deposit

• Student Loan

• Credit Card Account

• Car Loan

Investments with higher returns generally have higher

• risk

• fees

• liquidity

• deductibles

The best reason for depositing money in a bank or credit union savings account instead of keeping your money “under the mattress” is that

• It is insured.

• It earns interest.

• It is safer.

• It grows.

A term that best best describes your gross pay after taxes are deducted is:

• Net Pay (take-home pay)

• Net Worth

• Assets

• Total Revenues

Which of the following is NOT a deduction that will show up on your paystub from your employer?

• Sales Tax

• Payroll Deductions (Health Care, FICA)

• Federal Taxes

• State Taxes