Economics Final Semester Exam

Which term refers to an individual's history of debt repayment?

• low-risk borrower

• credit history

• credit score

• credit rating

Which financial service is specifically designed to protect depositors against the loss of their deposits if a bank fails?

• Federal Deposit Insurance Corporation (FDIC)

• Electronic Funds Transfer (EFT)

• Overdraft

• Stop-payment order

What does “Less Cash” mean on a deposit slip?

• Amount of cash you want back

• Sum of all the items deposited

• Amount of cash you want to deposit

• Amount of checks you want to deposit

What is typically included in employee benefits?

• Health insurance, retirement plans, and paid leave

• Bonuses based on company performance

• Deductions from salary for taxes

• Unpaid volunteer opportunities

What financial benefit is missing when renting an apartment but it is in home ownership?

• High mobility

• No tax benefits

• Utility coverage

• High rental fees

What is the earnings per pay period for a biweekly pay schedule with an annual salary of $42,120?

• $3,510

• $1,620

• $810

• $1,755

What is considered an advantage of renting your first apartment according to the slide?

• Increased financial responsibilities

• Limited mobility

• More free time

• Higher financial risk

What is the term for a banking service that allows for the electronic movement of money from one bank account to another?

• Electronic funds transfer (EFT)

• Credit card

• Check

• Savings account

What does the term "principal" refer to in financial borrowing?

• The credit score of the borrower

• The fees associated with processing a loan

• The interest accrued on a loan

• The initial amount of money lent to the borrower

Which of the following is NOT a form of earned income?

• Commission

• Bonus

• FICA taxes

• Overtime wage