Financial Literacy Unit Two Review

Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?

• $7.50
• $26.25
• $87.5
• $262.50

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 regular payments.
• Using a credit card responsibly and paying the balance off each month can help improve your credit score.
• People that use credit cards become wealthy more quickly.

A type of service offered by a bank that allows you to go online at anytime and check your account balances or pay your bills is called what type of service?

• debit service
• online protection
• online banking
• credit access

Sunshine Bank offers free checking, a savings account for $5.00 per month, free online banking, and an overdraft fee of $35.00 as well as a free debit card. Johnson Credit Union offers a checking account for $3.00 per month, a free savings account, and an overdraft fee of $25.00 as well as a free debit card. Which statement below does NOT accurately compare these two banking options?

• Sunshine Bank offers free checking as opposed to a $3.00 fee for checking charged by Johnson Credit Union.
• Both banks offer a free debit card and free online banking.
• Sunshine Bank charges $10.00 more for an overdraft fee.
• Johnson Credit Union and Sunshine Bank both charge a fee for a savings account.

Interest is:

• a charge for lending money
• the cost of borrowing money
• the amount added into your savings account when opening a bank account
• a charge for convenience of accessing money in your bank

Which of the following is true?

• Budgets are intended for those tight on cash with low incomes
• The sooner you get in the habit of budgeting, the more financially successful you will be
• Only needs are included in a budget
• A budget is a lot of work and not worth the time

The balance in your account is...

• the amount of money you've spent

• the amount of money you currently have

• the interest rate

• how many checks you've written

Which account usually earns interest and is used to hold money that is not needed right away?

• savings account

• checking account

Which account is usually used to pay bills and supply money for your debit and credit card purchases?

• savings account

• checking account

What is a transaction register used for?

• Calculating the interest earned from your savings account,

• Lowering the amount of transactions you make.

• Keeping track of your account balance--what money you both removed from and deposited into your account.