Unit One Economics Review

What is the purpose of writing a check?

• To make a payment

• To deposit money

• To withdraw money

• To check your account balance

Which of the following is NOT required when writing a check?

• Date

• Payee's name

• Bank account number

• Signature

Which part of a check indicates the amount of money being paid?

• Date

• Payee's name

• Numeric amount

• Written amount

How does a larger down payment affect monthly mortgage payments?

• It increases monthly mortgage payments

• It decreases monthly mortgage payments

• It has no effect on monthly mortgage payments

What is a stock?

• A type of soup

• A form of currency

• A financial instrument representing ownership in a company

• A type of bond

Which of the following best describes a savings account?

• A type of investment account

• A type of checking account

• A type of credit card

• A type of loan account

Which of the following is a benefit of having a savings account?

• Access to credit cards

• Safe storage for cash

• Higher interest rates than other accounts

How does interest on a savings account work?

• The bank pays interest to the account holder

• The account holder pays interest to the bank

• Interest is not applicable to savings accounts

• Interest is paid only when the account is closed

What are the potential consequences of not making the minimum payment on a credit card?

• Increased interest charges and late fees

• Negative impact on credit score

• Legal action and collection efforts

• All of the above

What is the purpose of a budget?

• To restrict spending

• To prioritize financial goals

• To limit income

• To increase debt