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WorksheetsPersonal Financial Responsibility: Chapter 7 Review
Total questions: 24
Worksheet time: 12mins
Name
Class
Date
1.
Spending money on luxury items while basic needs are not being met is an example of financial irresponsibility.
a)
True
b)
False
2.
Credit is the ability to borrow money and pay it back later, usually without interest.
a)
True
b)
False
3.
Service credit is often provided by utility companies and doctors.
a)
True
b)
False
4.
Finance charges increase the cost of items purchased by a credit card.
a)
True
b)
False
5.
A person who borrows money is called a creditor.
a)
True
b)
False
6.
Systematic decision making
a)
is the process of making choices that reflect your goals
b)
considers all the pros & cons as well as the costs
c)
requires you to be financially responsible
d)
all of these
7.
Which of the following is NOT a reward of being financially responsible?
a)
an easy life
b)
satisfaction
c)
independence
d)
financial freedom
8.
Which of the following is NOT one of the five steps of creating a buying plan?
a)
define your spending goal
b)
choose a payment method
c)
define criteria
d)
set a spending limit
9.
Protections offered by many credit card companies include
a)
replacement of goods damaged or stolen within 90 days of purchase
b)
relief from liability of fraudulent charges made without your knowledge
c)
emergency replacement of a lost card within 24 hours
d)
all of these
10.
Which of the following is NOT a cost of financial responsibility?
a)
unhealthy lifestyle/poor health
b)
lack of recreation and fun
c)
no income
d)
poor family relationships
11.
Late credit card payments can
a)
increase your interest rate
b)
incur penalties and additional fees
c)
hurt your credit score
d)
all of these
12.
Three methods used to compute interest charges on revolving credit accounts include
a)
previous balance method, average daily balance method, ending balance method
b)
adjusted balance method, prior balance method, minimum daily balance method
c)
adjusted balance method, previous balance method, average daily balance method
d)
none of these
13.
Which of the following is NOT a benefit of using credit cards?
a)
convenience and rewards
b)
increased spending power
c)
protections from fraud
d)
interest earnings
14.
Which of the following is true of a payday loan?
a)
it is difficult to obtain
b)
interest and fees can be substantial
c)
it is a long-term loan
d)
none of these are true
15.
__ look like regular checks but are used to borrow money against your credit card account.
a)
access checks
b)
cashier's checks
c)
personal checks
d)
money order
16.
A buying plan can help prevent __, which is regret over a buying decision you have made.
a)
buyer's remorse
b)
credit sadness
c)
creditor planning
d)
consumer regret
17.
A(n) _ is a refund of part of the purchase price of an item.
a)
rebate
b)
penalty
c)
warranty
d)
coupon
18.
_ credit is often used to finance a single high-priced item through a series of equal payments made over a set period of time.
a)
installment
b)
revolving
c)
credit
d)
charge
19.
_ cards require payment of the balance in full each month.
a)
charge
b)
credit
c)
store
d)
revolving
20.
A(n) __ is a fee charged for violating a term of a credit agreement.
a)
penalty
b)
fee
c)
rebate
d)
installment
21.
__ credit is the ability to receive services and pay for them later.
a)
service
b)
installment
c)
revolving
d)
easy access
22.
__ credit allows the account holder to charge to the account repeatedly and have an ongoing balance.
a)
revolving
b)
installment
c)
charge
d)
easy access
23.
Property that can be used as security for a loan is called __.
a)
collateral
b)
revolving
c)
charge
d)
penalty
24.
__ credit can be obtained quickly and easily but often carries high or hidden costs.
a)
easy access
b)
revolving
c)
installment
d)
instant access
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