Personal Finance Ch. 7 Quiz

At a Pawn Shop, if you don’t pay off the loan by the deadline, the shop:

• will cancel the contract for a fee

• keeps your item and any money deposited

• will extend your time on the first offense

• will refund your deposited money

All are true about Debit Cards EXCEPT:

• use to withdraw money from your checking or savings accounts

• use to make a purchase and pay at a later date

• card is linked to both your checking and savings accounts

• use to transfer money between accounts at the ATM

Problematic financial businesses include each of the following EXCEPT:

• credit unions

• pawn shops

• check cashing outlets

• rent-to-own centers

When writing a check, include all of the following EXCEPT:

• dollar amount written numerically and in words

• the name of the payee

• your signature on the front

• an endorsement on the back

The Rule of 72 is used to tell you:

• the amount of money to save for an “emergency”

• how many years it will take to save $72,000

• how many even numbers divide into 72 evenly

• how many years it will take to double your money at a specific interest rate

If Bank of America, an FDIC bank, goes out of business, will Mr. Palacio be entitled to his $225,000 that he has in his savings account?

• depends on his credit standing with the bank

• yes, he is entitled

• no, he is not entitled to any money

• no, he will only be entitled up to $200,000 and lose $25,000

Compared with commercial banks, credit unions generally offer:

• higher interest rates on loans

• lower interest rates on loans

• membership fees

• lower interest rates on savings accounts

Ms. Reese participates in ____ when she automatically has her net pay from Rowland Unified sent to her checking account.

• compounding

• auto bill pay

• direct deposit

• endorsing

A checking account is best used for:

• storing money for spending

• investing money

• long term earned interest

• saving money

Where do banks get most of the money that they loan to customers?

• customer ATM fees

• credit card fees

• overdraft fees

• customer savings type of accounts