CM Midterm Exam Review 2023

Which of these statements about savings is incorrect?

• People often believe they are saving when they buy products at a listed discount, even if they didn't need the product in the first place

• It is extremely difficult to open a savings account, as you typically need at least $10,000 for your initial deposit

• Without a vehicle to save (like a savings account), it's much easier to spend and harder to keep track of finances

• Billions of dollars is spent on marketing to persuade consumers to spend money instead of saving it

When a bank says their savings account earns 1% interest, that typically means you will earn 1% interest over what period of time?

• Daily

• Monthly

• Quarterly (three months)

• Annually (a year)

Tags

CCSS.6.RP.A.3C

Which list includes the most important factors to consider when opening a savings account?

• The fees, the interest rates, and the minimum deposit to open the account

• The fees, the interest rates, and the bank’s brand recogniti

• The fees, which bank your friend uses, and the minimum deposit to open the account

• The fees, which bank your friend uses, and the bank’s brand recognition

Jeremy is a 17-year-old junior in high school and just started his first job. He wants to open a savings account. Which of these will he need to bring to the local bank branch in order to start an account?

• A letter from his school

• A letter from his parents

• An adult cosigner because he is under 18

• An adult cosigner because he is still a student

Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?

• 3 months

• 9 months

• 24 months

• 30 months

Tags

CCSS.7.EE.B.4A

What would be a good time to spend money from your Emergency Fund?

• You lose your job but still have bills to pay

• Your friend tells you that you should buy as much Bitcoin as possible

• Your favorite artist releases a new album and you just have to buy it

• Your friends are going on an expensive trip an you would like to go with them

Juan saved $1,000 from his summer job cleaning pools. Which of these savings vehicles would work best for him if he doesn't need access to the money for a number of years AND wanted to earn the highest interest rate?

• Regular savings account

• Money Market account

• Checking account

• Certificate of Deposit

Benefits of credit cards include:

• safe and convenient, bonuses are offered

• allows you to build a positive credit repor

• needed for reservations and online shopping

• all of these

The cost of credit expressed as a yearly interest rate is known as:

• Annual Percentage Rate (APR)

• Penalty APR

• Annual Fee

• Introductory Rate

Tags

CCSS.6.RP.A.3C

. 

You see on a commercial that Orange Co is offering a credit card with a 5% cashback program for all cardholders. What is ONE question you might ask to evaluate how good this offer is?

• Can I choose the picture that is on the front of my credit card?

• Who does Orange Co use as their spokesperson in the commercial?

• Is there an annual fee on this credit card and how much is

  it?

• Can I get a debit card along with a new credit card?

Tags

CCSS.RI.2.1

CCSS.RI.3.1

CCSS.RL.1.1

CCSS.RL.2.1

CCSS.RL.3.1