Financial Literacy Final Review

Front

What are overdraft fees?

Back

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

Front

What is rent-to-own?

Back

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

Front

What is the rule of 72?

Back

A formula to estimate doubling time.

Front

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

Back

24 years

Front

Define opportunity cost.

Back

The cost of a missed opportunity

Front

What is the opportunity cost of paying $300 to repair your car instead of buying a PS5 on sale for $300?

Back

The cost of the PS5

Front

What might be some opportunity costs of attending college?

Back

Earning a full-time salary, Traveling the world, Starting a business

Front

What is the law of supply and demand?

Back

Price is determined by the relationship between supply and demand

Front

What determines the price of a good or service? Options: The cost of production, The level of demand and supply, Government regulations, The quality of the product

Back

The level of demand and supply

Front

Impulse buying is purchasing an item spontaneously without prior planning.

Back

True