Math Financial 1 Review

Which type of transaction withdraws money from your checking account?

• Using your credit card

• Writing a check

• Using your debit card

• Making a deposit

What is true about overdraft protection?

• an agreement with the bank or financial institution to cover overdrafts on a checking account.

• Protects the money depositors place in insured banks in the unlikely event of an insured-bank failure. Each depositor is insured to at least $250,000 ...

• It usually involves a fee.

• It is a free service offered by most banks

Which financial activities add money to your account?

• deposit

• debit

• credit

• service fee

• withdrawal

Which financial activities subtract money from your account?

• deposit

• debit

• credit

• service fee

• withdrawal

What are advantages to online banking?

• All fees are waived.

• You can view daily transactions, rather than waiting for the monthly statement.

• You can pay bills online and transfer money between accounts.

• You do not have to go into a physical branch of the bank.

What is the 50-20-30 Rule?

• 50% for needs

  20% for wants

  30% for savings

• 50% for savings

  20% for needs

  30% for wants

• 50% for wants

  20% for savings

  30% for needs

• 50% for needs

  20% for savings

  30% for wants

What is compound interest?

• It is calculated using the principal only

• Interest x 2

• It is what happens when the interest you earn on savings begins to earn interest on itself.

What does APR stand for?

• Artificial Parts Recall

• Annual Percentage Rate

• Associated Prescriber Rate

• Annual Participation Rate

The lower your credit score, the ________ the interest(APR) you will be charged for a loan.

• higher

• lower

How does a down payment impact a loan?

• It reduces the amount you have to borrow.

• It increases the length of the loan.

• It increases the amount you have to borrow.

• It has no impact.