Financial Literacy Part 1 Study Guide

Identify the type of expense described.

You get a flat tire and must replace the tire.

• Fixed

• Discretionary

• Periodic

• Variable

Identify the type of expense described.

Your water bill is very high this month because you left the water hose running after filling your pool with water.

• Fixed

• Discretionary

• Periodic

• Variable

How would you write the amount on a check in alpha numerical format for the amount of $22.34?

• 22.34

• 22.34

• twenty-two and 34/100

• Twenty-two dollars and thirty four sents

What is the correct way to write the date on a check? Select all that apply.

• June 11, 2022

• 06-June-2018

• 3-14-2011

• 12/24/22

What type of purchase should be most likely to be put on a credit card?

• Expensive Items
• All purchases
• None

What is money borrowed to pay for a large purchase like a car or home called?

• Creditor
• Loan
• Retail
• Major

You go to Best Buy to purchase a computer that costs $1,200.00 and try to charge it to your credit card.  Your card is declined.  Why?

• Your credit limit is only $500.00
• You only have $500 in your checking account.
• You only have $500 in your savings account.

What is a written agreement outlining the terms of a loan?

• Credit Risk
• Expense
• Contract
• Debt Record

You are 18 and want to buy your first car using credit.  What will a potential creditor look at determine if they should lend you the money or not?

• Credit

• Credit Score

• Credit Reporting Agency

• Employers

What are two types of credit cards?