PFLE Semester Review

Which purchase will decrease your checking account?

• using your debit card to pay for a movie

• using your credit card to pay for dinner

The basic economic problem that everyone has to solve is

• making renewable resources

• satisfying unlimited wants with limited resources

Failure to pay back a loan and missing credit card payments will impact which of the 5 Cs the lenders use to determine credit worthiness?

• Capacity

• Character

• Capital

• Conditions

What is the name of the form you must complete to apply for federal student aid?

• Free Application for Federal Student Aid (FAFSA)

• The Common Application (TCA)

Which of the following is NOT a good way to protect your identity?

• Use a debit card instead of a credit card when making online purchases

• Shred financial and health documents before disposing of them

Which of the following is a characteristic of capitalism and socialism, but not communism?

• Private entities play a role in economic decision making

• Production decisions are made only by government entities

Which of the following is a disadvantage of payday loans?

• Payday loans involve higher interest rates and fees than credit cards or other short-term loans

• Payday loans are difficult to get approved and usually require a co-signer.

Which of the following best describes an entrepreneur?

• Someone who takes financial risks to create a business in the hope of profit.

• An independent contractor who earns their wages on a per-job or per-task basis.

If the popularity of an item decreases, what will happen to the equilibrium price?

• The equilibrium price increases because supply shifts left.

• The equilibrium price decreases because demand shifts left.

What is a benefit of investing in a Roth IRA versus a traditional IRA?

• Investments are not taxed on initial investment and will be taxed when the withdrawal is made. (Decreases taxable income now, pay taxes later when you retire)

• Investments are taxed on initial investments and will not be taxed at the time of withdrawal. (Pay taxes now and have tax-free money when you retire)