Financial Literacy Final Exam Review

Finance companies take less risk than banks, so they tend to more lenient with borrowers who are late making a payment.

• True
• False

Income taxes are an example of which type of tax?

• progressive
• regressive
• proportional
• excise

Two elements to consider in budgeting and planning are your income and expenses.

• True
• False

All of the following are danger signs that you are overextending your credit EXCEPT

• your credits cards are all near the limit.
• you pay your credit card balances in full each month.

• you skip some payments in order to make other payments.
• you often pay one credit card by using another credit card.

All payroll deductions are required by law.

• True
• False

A standard workweek is

• 30 hours.

• 36 hours.
• 40 hours.
• 44 hours.

A credit freeze is a service where a company monitors your credit file and notifies you of changes.

• True
• False

The total dollar amount of all interest and fees you pay for the use of credit is called the

• collateral.
• balance due.
• principal.
• finance charge.

Simple interest is interest computed on the amount borrowed plus compounding.

• True
• False

Creditors have no responsibilities to consumers/borrowers.

• True
• False