Financial Literacy Final Review

What are overdraft fees?

• Fees charged when you withdraw more money than you have in your account

• Fees for using an ATM

• Monthly maintenance fees

• Fees for transferring money between accounts

What is rent-to-own?

• A process where you rent an item and have the option to purchase it later

• A type of mortgage

• A rental agreement with no purchase option

• A lease for a car

What is the rule of 72?

• A method to calculate interest rates

• A formula to estimate doubling time

• A rule for calculating taxes

• A guideline for budgeting

Using the rule of 72, how many years would it take to double your money with an APR of 3%?

• 24 years

• 36 years

• 18 years

• 12 years

Define opportunity cost.

• The cost of a missed opportunity

• The cost of an investment

• The cost of goods sold

• The cost of production

You have been waiting for a PS5 to go on sale for $300. Just as the sale begins, your car breaks down and needs repair. You make the responsible decision and pay $300 to repair your car. What is the opportunity cost?

• The cost of the car repair

• The cost of the PS5

• The cost of both the car repair and the PS5

• The cost of future repairs

What might be some opportunity costs of attending college?

• Earning a full-time salary

• Traveling the world

• Starting a business

• All of the above

What is the law of supply and demand?

• When supply increases, demand decreases

• When demand increases, supply decreases

• Price is determined by the relationship between supply and demand

• Supply and demand are unrelated

What determines the price of a good or service?

• The cost of production

• The level of demand and supply

• Government regulations

• The quality of the product

Impulse buying is purchasing an item spontaneously without prior planning.

• True

• False