Unit 7 Personal Finance Study Guide

Complete this sentence: A checking account statement...

• is the receipt you get from a store when you purchase something using a check
• tells you the bank's policies on fees
• lists all the purchases and deposits you've made in the previous month
• allows you to take out a student loan for college

Which of the following transactions will REDUCE the amount of money in your checking account?

• Deposit a check your uncle gives you for your birthday
• Use your debit card to get money from an ATM
• Buy an expensive new bike using cash
• Transfer funds from your saving account to your checking account

What do you need in order to open a checking account?

• A form of ID and proof of address
• At least $50 saved up
• A report card showing you've passed all your classes
• Two letters of recommendation

Damaris is shopping online for a new laptop for school. He finds one he likes and wants to purchase it. How does he know if the website he is shopping on is secure?

• A secure website will always require a username and a password.
• The word SECURE will appear in the upper righthand corner.
• The URL will change to https://
• Secure websites always have a large lock at the bottom of the webpage.

Which of these is the strongest password?

• football - It is easy to remember so you will never forget your password.
• 123456 - It contains all numbers instead of letters, making it more secure.
• daniel1 - It contains both the person's name and a number.
• t1pwtsb! - It contains letters, numbers, & symbols and is a memorable sentence turned into a password.

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

• Credit cards allow you to borrow money to pay for things, while debit cards take money straight from your own checking account
• Wealthy people use credit cards, while people with lower incomes use debit cards
• Credit cards come from credit unions, while debit cards come from banks
• You can only use credit cards if you are over 25, but you can use debit cards as long as you are over 18

Craig isn't sure if he should open up a credit card account or get a bank loan. What question is MOST useful in helping him decide which financial product he should get?

• Are you responsible with your money?
• Are you trying to make a bunch of small purchases over time or one large purchase?
• Are you using the money to purchase an item that is a need or a want?
• How much money do you have in your bank account?

Kervin really wants to buy a new bike because his old one is too small now. He's trying to decide if he should use his debit card or credit card. What's one reason he should be careful about using credit?

• Credit will take the money straight from his checking account, lowering his bank balance
• Credit will force him to pay taxes on his bike purchase
• Credit will charge him interest every month until he repays his full balance
• Credit will force him to buy a cheaper bike than he could with debit

Which statement about credit card interest rates is TRUE?

• The more money you spend on purchases, the higher your interest rate will be
• A high interest rate means you'll pay MORE money total
• A high interst rate means you'll pay LESS money total
• Most credit cards do not charge any interest rate

Which age group tends to have the most credit card debt?

• Young adults
• Middle-aged people
• Senior citizens
• Credit card debt is evenly distributed among all age groups