Objective 3.02 Financial Skill

Low interest rates, no membership fees, and grace periods are important criteria to consider when selecting:

• credit cards

• savings accounts

• checking accounts

• mortgages

Which are examples of expenses?

• interest and bonuses

• allowance and scholarships

• food and insurance

• wages and salary

When Miranda opened her credit card bill, she was surprised to see that the amount she owed was more than the cost of the things she had purchased. What is the probable cause of this difference?

• debit

• interest

• equity

• credit

Fundamental beliefs or practices of personal importance should be placed in which category?

• values

• needs

• income

• wants

Money earned from savings accounts and investments is an example of:

• income

• a spending plan

• a savings account

• expenses

When Greg received his first paycheck, he was surprised to see it was much lower than expected. He had not considered the regular deductions that would be taken out of his check. The amount Greg received is referred to as:

• weekly wage

• hourly wage

• net income

• gross income

Which consumer responsibility is being exercised when a consumer checks the prices of different stores to ensure the best price for a product?

• the responsibility to use ethical behavior

• the responsibility to make reasonable complaints

• the responsibility to be wise with purchasing decisions

• the responsibility to use products wisely

Johnny is observed wearing a short sleeved shirt as he waits for the bus on a cold morning. A jacket for Johnny would be considered a:

• need

• want

• priority

• wish

Haley received a bonus and wants to deposit it in an account that allows limited withdrawals, but pays a higher interest rate. Which would be the best type of account for her to use?

• checking account

• money market deposit account

• certificate of deposit (CD) account

• savings account

Which is the best way to increase the amount of one's savings, without depositing more money?

• take advantage of the time value of money

• save at least two months’ worth of expenses

• practice “pay yourself last”

• save money in a safe at home to protect it against loss