Financial Literacy Quiz Unit 4 Quiz

What are the types of bank fees?

• Check Cashing Fees

• Overdraft Protection Fees

• ATM Fees

• Checking Account Service Fees

• Minimum Balance Charge

What are the ways to avoid overdraft fees?

• Watch your balance

• Link your checking account to a savings account

What are the advantages of credit cards?

• If you are responsible with spending habits and paying on time it can help build up your credit score

• If you pay more than the minimum payment each time it can help your creditworthiness

• Being responsible, not getting into debt and having a good credit score can help you get approved for loans, mortgages and even to buy cars

• You can take advantage of the perks a credit card can offer if you use it the right way

• Builds Credit History

Do credit cards have a credit limit?

• Yes

• No

What are the different types of prepaid cards?

• Prepaid Gift Cards

• Retail Prepaid Cards

• Payroll Cards

• Prepaid Cashback Cards

What is cash inflow?

• Money received from various sources

• Money paid out or spent

What is compound interest?

•  interest earned on both the principal and any interest that has been earned previously.

• interest earned only on the principal.

Do employers make contributions to an IRA or 401k?

• IRA

• 401k

What are the ways to select a college or university?

• Visit and Attend College Fairs

• Evaluate College Rankings and Reputation

• Consider Financial Aid and Scholarships

• Research and Identify Your Interests

• Consider Location

What is simple interest?

• interest earned on both the principal and any interest that has been earned previously.

• interest earned only on the principal.