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Future Smart: Ways to Pay (Module 3)

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Amy's new summer job at the pool will pay her $9 per hour. Which term describes this type of hourly income?

a)

salary

b)

stipend

c)

wage

d)

benefit

2.

Which factor has the biggest impact on a credit score?

a)

payment history

b)

type of credit

c)

amount owed

d)

length of credit

3.

Ashley wants to use money from her checking account to make a purchase. Which payment method should she use?

a)

credit card

b)

debit card

c)

direct deposit

d)

prepaid card

4.

What is the best strategy for avoiding credit card interest?

a)

Pay the full balance each month

b)

Skip payments

c)

Pay the minimum balance

d)

Make payments online

5.

___________________ is withheld from a paycheck and is used to fund government services such as health care, national defense, and scientific programs.

a)

Federal Income Tax

b)

Medicare

c)

Social Security

d)

State Income Tax

6.

A ________________ is usually paid on a biweekly or monthly basis for professional employment.

a)

salary

b)

stipend

c)

wage

d)

benefit

7.

Which of the following is the best reason to use cash for purchases?

a)

Getting more from the ATM is easy to do

b)

Keeping track of how much you have spent is simple

c)

Splitting bills with friends is easier

d)

Losing it won’t be a big deal

8.

Which of the following is not a source of income?

a)

Your annual salary for doing your job

b)

Your monthly student loan payment

c)

The stipend you receive for doing an internship

d)

The wages you receive after a work shift

9.

Which of the following statements is TRUE:

a)

Applying for several lines of credit in a short period of time can help boost a person’s credit score.

b)

Paying off a credit card balance in full can have a negative impact on someone’s credit score.

c)

The longer you use credit responsibly, the higher your credit score.

d)

Low-risk borrowers tend to have low credit scores.

10.

Which of the following statements is TRUE about payday loans?

a)

They are harder to pay back because of low fees and high-interest rates

b)

They are harder to pay back because of high fees and high-interest rates

c)

They are easier to pay back because of lower fees and higher interest rates

d)

They are easier to pay back because of lower fees and lower interest rates

11.

What is the problem with paying only your minimum credit card balance each month?

a)

It lowers your credit score

b)

You have to pay interest

c)

The bank will cancel your credit card