WorksheetsEconomics: Personal Finance 2
Total questions: 17
Worksheet time: 21mins
The card you use to both access funds in your bank account and pay for goods and services is:
a credit card
a birthday card
a gift card
a debit card
Writing a check is the same thing as:
making a withdrawal
getting the bank to issue a cashier's check
using a debit card
using a credit card
When I use my debit card, the money is almost immediately taken from my account.
true
false
Another name for an overdraft fee is non-sufficient funds.
true
false
You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?
Compounding 1 time per year
Compounding quarterly
Compounding monthly
Compouding daily
How do people get trapped in the payday loan cycle?
Customers usually only need to borrow money once
Lenders typically give loans out with a low APR
Customers may visit several payday loan lenders to get $
Lenders typically give out long-term loans
If you decide to pawn an item of yours, which of the following is TRUE?
You will not pay extra charges besides the APR
The loan amount is usually = to the value of your item
You cannot sell an item to a pawnshop
If you don't come back for you item, the pawnshop keeps it
What is a risk of co-signing a loan for a family or friend?
You are likely to get a higher APR
You have a shorter loan term
You become the primary borrower on the loan
You may be held responsible for the debt
Why is compound interest more beneficial than simple interest?
Your money grows faster when it is compounded
You earn interest on your interest
Fees for compound interest are greater than simple interest
Compound interest is hard to calculate, so fewer use it
A diversified portfolio is desirable because
It limits investment choice
It's a good predictor on rate of return
It increases risk and return
It decreases risk
Your money remains tax-deferred in this account until you withdraw (taxed as income)
Roth IRA
Traditional IRA
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
