Financial Literacy IA6/Final Exam SY21-22 Review

What is a resume?

• A list of people willing to recommend you for a job

• A collection of work samples

• A document that describes your qualifications for a job

• A letter of application

What is direct deposit?

• A deposit you make at an ATM

• An interest payment from the bank

• A transfer you make between two bank accounts

• A deposit an employer makes into an employee's account

What should be left out of financial decisions whenever possible?

• Emotion

• Shared decision making

• Financial plans

• All of the above

Which of the following statements is TRUE about the value of a college education?

• A high school graduate can expect to earn about the same as a college graduate.

• A college graduate can expect to earn, on average, about $40,000 more than a high school graduate over a career.

• If you start college but don't finish, your pay will be closer to the level of a high school graduate than the level of a college graduate.

• College is only valuable if you want to increase how much you earn.

What is a stock?

• A partial ownership in a company

• A group of real estate investments

• A regular payment a company issues investors

• A government investment

Which loan type am I? I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate.

• Unsubsidized Federal Student Loan

• Private Student Loan

• Subsidized Federal Student Loan

• Institutional Student Loan

Commercial banks are funded through which of the following?

• Customer deposits

• Government funding

• Stockholders

• Services

The FDIC in the United States insures some financial accounts up to what amount?

• $10,000

• $250,000

• $50,000

• $500,000

Reading through a credit card disclosure (aka the Schumer Box), you see the A.P.R. for a specific card is set at 9.99% - 23.99%. Which of the following statements is probably TRUE?

• When given a range of A.P.R.s like this, you can assume most cardholders pay the lowest rate listed

• One of the primary factors determining your card's A.P.R. is your credit score

• With credit card A.P.R.s, cardholders like higher A.P.R.s because they earn more

• The A.P.R. on credit cards is usually fixed so they won't be adjusted as long as you are a cardholder

Which of the following statements comparing credit and debit cards is TRUE?

• Far more businesses accept credit cards than debit cards

• Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

• Credit card companies provide you with a monthly statement, while debit cards do not

• With debit cards, you're spending your own money at point of sale, while with credit cards, you're promising to pay back the money eventually