Personal Finance Basics Quiz Wk2.4

What is the benefit of a checking account?

• It earns high interest

• It allows you to save money long-term

• It helps you spend money without carrying cash

• It helps you build credit

Why is it important to be an informed consumer?

• To pay the lowest sales tax

• To follow trends

• To get the most value for your money

• To shop locally

What is the primary benefit of a savings account?

• You can borrow money

• You earn interest

• You get a debit card

• It increases your credit score

Which item is considered a "want"?

• Groceries

• Internet

• Streaming service

• Cell phone

How is money divided using the 50-30-20 rule?

• Wants, needs, retirement

• Savings, expenses, emergencies

• Needs, stocks, bonds

• Needs, wants, savings

Which is a key benefit of mobile banking apps?

• You can deposit checks

• You can write paper checks

• You earn higher interest

• You avoid all fees

What does “pay yourself first” mean?

• Buy what you want before paying bills

• Save money before paying other expenses

• Pay off your credit card first

• Pay down debt before all else

Which loan type requires collateral?

• Unsecured loan

• Payday loan

• Secured loan

• Student loan

What is a Certificate of Deposit (CD)?

• A checking account with high fees

• A type of credit card

• A savings option with a required time commitment

• A loan that must be repaid in full each month

Which is an example of a predatory loan?

• Payday loan

• Student loan

• Auto loan

• Secured loan