Unit 3 & 4 Pratice Test

What is a disadvantage of using a credit card?

• It is easy to use.
• You can spend more than you have. 
• It can be used in emergencies.
• Banks sometimes give rewards on credit cards. 

Which is an advantage of using cash?

• It is accepted almost everywhere in the US.
• You can spend more than you have. 
• If you lose it, it is gone. 
• It is safer than a card or check. 

Which method of payment should I use when mailing money?

• Check
• Cash
• Credit Card
• Debit Card

What is the difference between Debit and Credit?

• Debit uses money borrowed from the bank, Credit uses the money you already have.
• Credit uses borrowed money or the bank's money, Debit uses your money.  
• They are both cards, they are the same. 
• Debit charges interest until the balance is paid. Credit does not because you are using your own own money. 

If the customer pays full balance by the due date every month, he/she doesn't have to pay _____________.

• credit limit

• balance

• interest

• anything

Money is withdrawn directly from a checking or savings account.

• Debit Card

• Credit Card

• Both

For which of the following should you save

• Purchase
• Emergency Fund
• Wealth Building
• All of the above

You should save money for three basic reasons: emergency fund, purchases and wealth building.

• True

• False

Net pay

• Revenue before deductions

• State and local taxes

• Income after all deductions have been paid

• I don't know i just want pizza and wings

What is the term for the amount you get paid after taxes are taken out?

• gross pay
• clean pay

• net pay
• goal pay