Personal Finance Semester 1 Exam Review

Which of the strategies will result in paying ZERO credit card interest?

• Paying the minimum monthly payment each billing cycle

• Paying the entire credit card off in full by the end of the year

• Paying the entire balance off every month on time.

Tags

CCSS.7.RP.A.3

Jade works at a technology company in the summer and earns $4000. After federal, state, and Social Security/Medicare taxes are deducted, her take-home pay is $3,200. Which of the statements below is CORRECT?

• Her gross and net pay are $4000.

• Her gross and net pay are $3200.

• Her gross pay is $4000, but her net pay is $3200.

Tags

CCSS.7.RP.A.3

Choose the BEST answer: Which of these represents a major convenience of using a mobile banking app?

• Mobile banking is the only way to transfer money electronically

• You can deposit checks by taking a picture of the front and the back of the check.

• You can leave your debit card at home because most stores will allow you to pay with your phone.

Johnny is trying to select his first credit card, and he's got it narrowed down to two options he thinks would work really well for his circumstances. What should his final step be before making a choice between the two?

• Choose the card with the best promotion.

• Ask his friends for their recommendations.

• Read the fine print carefully.

Which of these questions are important to ask when opening a checkings/savings account?

• Is there a minimum monthly balance?

• Does the bank offer mobile banking and text alerts to help you stay organized?

• All of the above.

What is a good tip for using online and mobile banking?

• NEVER use a password on your phone.

• Share your login with a friend.

• Choose clever and secure usernames/passwords and keep them secure.

How do credit cards differ from loans?

• Loans are good debt and credit cards are bad debt.

• Loan payments are the same each month while credit card payments can vary.

• Credit cards are much easier to qualify for than loans.

What is a way to spend money from your checking account?

• Write a check

• Sign up for direct deposit at your job

• Take money from the ATM using your credit card

Amber works a part-time job during her junior and senior years of high school. Although her main goal is to save enough for a really nice laptop, she'd also like to build up an emergency fund. She wants to have at least $500 to take with her in case she needs it during college. Which saving strategy is most likely to help Amber meet her goal?

• Spend all of her paychecks from her junior year, but start saving in her senior year.

• Decide how much she should save from each paycheck and then auto deposit that amount into a savings account each paycheck.

• She can just use student loans to pay for college expenses and doesn't need an emergency fund.

Which of the following is true about overdraft protection?

• The average overdraft fee is $25 or more.

• You can only be charged once per month if you overdraft, so it's okay to do it more than one time.

• You never have to worry about spending money you don't actually have.