PCC chapter 7 test

What is the purpose of a budget in managing finances?

• To increase expenses

• To regulate your spending and savings

• To eliminate the need for savings

• To calculate taxes

What is the role of FDIC?

• To provide loans to students

• To insure bank deposits

• To collect taxes

• To regulate stock markets

Which of the following is considered a need?

• A new phone

• A skateboard

• Food and water

• A car

What is the difference between a debit card and a credit card?

• A debit card earns interest

• There is no difference

• A debit card directly withdraws funds from your bank account

• A credit card allows direct deposit

What is the benefit of compound interest?

• It reduces the principal amount

• It increases tax liabilities

• It helps save money more quickly

• It simplifies financial statements

How does insurance serve an individual?

• It increases financial risk

• It helps in stock trading

• It protects against loss

• It guarantees income

What type of card allows for immediate deductions from your checking account?

• Debit card

• Credit card

• Smart card

• Bank card

Which of the following is NOT considered a common money mistake?

• Emotional or impulsive spending

• Buying after researching carefully

• Skipping payments on a credit card or loan

• Persuasive sales techniques

What is the first step in financial planning?

• Develop your financial goals.

• Open a checking account.

• Hire a professional.

• Review your bills.

When we budget or buy things what do we need to know?

• How much you will get paid next week.

• How much money you have

• Weekend plans