Financial Literacy Review Winter Exam-24

Which is the preferred method of payment for making a hotel room reservation?

• cash

• credit card

• electronic funds transfer

• promissory note

The following is true when considering writing a check or using a debit card:

• it is always better to write a check or use a debit card than to send money via an electronic funds transfer (EFT)

• a promissory note is more valuable than receiving payment via a debit card

• it is necessary to maintain a positive bank account balance for debit card transactions to successfully go through

• it is advisable to write a check after the grace period ends on your credit card bill.

One disadvantage of credit cards is:

• there is a grace period

• convenience

• high interest rates.

• 
  there is no grace period

A document that promises a specific amount to be paid, like a check or money order, is called a:

• negotiable instrument

• debit card

• holder in due course

• electronic funds transfer

A promissory note is also called:

• an EFT

• float

• an I.O.U

• a holder in due course

An electronic funds transfer, where funds are transferred from one bank account to another, is also called:

• an I.O.U.

• a debit card

• a negotiable instrument

• an EFT

A promissory note and legal tender, issued and backed by the government, payable on demand to the bearer, is called:

• private currency

• gold standard

• specie

• banknote

Paper and coin money in circulation used to purchase goods and services in an economy is called:

• treasury notes

• bearer

• stock

• currency

Dollars, Pesos and Yen are forms of:

• government bonds

• currency

• corporate bonds

• precious metals

If you are borrowing money to purchase a car, the loan agreement will likely include:

• payment schedule to pay the principal and interest

• a collision insurance policy

• payment schedule to pay the interest

• a mortgage on your house