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Unit 8 Review

Total questions: 21

Worksheet time: 19mins

Name
Class
Date
1.

A special plastic card that you can use to pay for things directly from your bank account.

a)

Credit card

b)

Cash card

c)

Debit card

2.

What is one difference between Banks and Credit Unions?

a)
Banks have Checking accounts and Credit Unions have Savings Accounts
b)
Banks are for profit.  Credit Unions are Non-profit.
c)
Banks can give loans and Credit Unions cannot
d)
Credit Unions allow everyone to join and Banks are selective
3.
Which one of the following terms is money that is paid regularly at a particular rate for the use of borrowed money?
SSEPFb
a)
Deposit
b)
Withdrawal
c)
Interest
d)
Net Worth
4.
The number that reflects your ability to get a loan and interest rates is your
SSEPF4a
a)
credit score
b)
credit karma
c)
bank rank
d)
LTF (Loan Trust Factor)
5.

How do commercial banks make a profit?

a)

commercial banks are non-profit institutions.

b)

charge borrowers and depositors the same interest rate

c)

pay depositors a lower interest rate than they charge borrowers

d)

charge borrowers a lower interest rate than they charge depositors

6.
Annual Percentage Rate (APR) is the yearly percentage rate of the finance charge. 
a)
True
b)
False 
7.
Paying the minimum payment on a credit card every month will:
a)
Pay a large percentage of the total balance owed every month
b)
Make the final amount paid substantially higher than the amount initially charged to the card
c)
help the cardholder create a plan for paying of a credit card in a decent amount of time
d)
allow the cardholder to avoid paying any interest charges 
8.

Which of the following effects Jamie’s credit score the MOST?

a)

His education level

b)

Being married

c)

How much he charges his customers

d)

His payments always being on time

9.

Consumers have a number of options when obtaining a loan. Financial institutions range from banks to payday lenders, and loans range from long to short term. One type of short-term loan is called a title pawn loan. Which statement BEST describes why these types of loans should be avoided if possible?

a)

A person is unable to apply for a new car title for up to three years after paying back the total balance of a title pawn loan.

b)

A vehicle title must be provided in exchange for a loan, and people can potentially lose their vehicles if loans are not paid back.

c)

A person applying for a title loan must be approved by his or her employer, which is information some may want to keep private

d)

After receiving a title loan, people are not allowed to open savings or checking accounts at any banks for up to six months.

10.

Which of the following financial institutions only serves its members?

a)

Savings and loan associations

b)

Commercial banks

c)

Credit Unions

d)

Payday lenders

11.

Match the following

a)

a place to store earnings, with direct deposits, credit and debit cards, and loans, but only provide these services to their members, who also own the institution.

1.

credit union

b)

provide short-term, very high interest loans to borrowers based on being repaid from a portion of the future earnings from the borrower’s job

2.

payday lender

c)

a place to store earnings that also offers direct deposit and check-writing, credit and debit cards, and loans and other services

3.

bank

d)

provide short-term, high-interest loans to borrowers based on the value of the borrower’s collateral, such as a car

4.

title pawn lender

12.

Money or other substance generally accepted as payment for goods and services.

a)

Measure of value

b)

Medium of exchange

c)

Scarcity

d)

Store of Value

13.

What are the 3 functions of money?

a)

Measure of Gold

b)

Store of Value

c)

Medium of Exchange

d)

Store of Bank Notes

e)

Measure of Value

14.

What are the 3 functions of money?

a)

Measure of Gold

b)

Store of Value

c)

Medium of Exchange

d)

Store of Bank Notes

e)

Measure of Value

15.

A saving account in a bank represents the function of money:

a)

Store of value

b)

A medium of exchange

c)

A standard for deferred payments

d)

A measure of value

16.

What function of money the picture represents?

a)

Unit of Account

b)

Store of Value

c)

Durable 

d)

Medium of Exchange

17.

What does store of value mean?

a)

The way something is stored over time

b)

The ability to keep the store open for a long time

c)

The currency system holds its value today, tomorrow and so on

18.

A legal process to get out of debt when you can no longer make all your required payment.

a)

Liquidation

b)

Bankruptcy

c)

Mean's Test

d)

Credit Counseling

19.

Identify the three credit reporting agencies? (All must be correct)

a)

TransUnion

b)

Equifax

c)

CarFax

d)

Experian

e)

American Express

20.
What is NOT a characteristic of money? 
a)
Divisible
b)
Portable
c)
Acceptable
d)
Accessible
21.
What characteristic of money the picture represents? 
a)
Acceptable
b)
Scarce
c)
Durable
d)
Stable