2/24 FM

When it comes to finance, which of the following best describes inflation?

• A general increase in prices and fall in the purchasing value of money

• The general increase in the value and purchasing power of currency

• A decrease in prices and increase in the value of money

• When some, but not all, prices increase due to changes in economic conditions

Jack has made arrangements for his bank to send money to his landlord each month to ensure his rent is paid on time. What account feature does he most likely have?

• Auto-pay

• Bill-pay

• Overdraft

• Direct deposit

Which of the following is an example of a virtuous cycle

• Generational welfare

• Alcoholism

• College graduation

• Gambling

Which of the following best describes floating money as it relates to finances?

• Debit card transactions that post immediately to the account

• Cash or check deposits that are not considered available funds yet

• Money that has been spent, or committed to be spent, but not processed by the bank yet

• Money that gets transferred back and forth between checking and savings accounts

When using the snowball method to pay off debts, which of the following would be considered a snowflake?

• Trimming $5 off of the food category when other categories get trimmed $10

• Selling a guitar to put a little extra toward debt

• Only purchasing items that are on sale

• Walking everywhere to save money on gas