WorksheetsFinancial Literacy EXAM semester 1_2023
Total questions: 35
Worksheet time: 18mins
Income can be earned or unearned. Which of the following is an example of unearned income?
Money from a part-time second job.
Tips from customers
Interest from bank accounts.
A risk of using a debit card for buying goods and services is that
there may be insufficient funds in the bank account.
there may be a hidden fee for each purchase.
the repayment period may be shorter than thirty days.
Which of the following is an advantage of people increasing their personal savings?
The economy grows faster when people save money rather than spend it.
The government benefits from taxes on savings.
People are better able to afford items such as a future down payment on a home.
When making online transactions, it is important to minimize the threat of identity theft by
using unique password and changing it frequently.
using a desktop computer instead of a mobile device.
shutting down the computer and erasing the memory each day.
Which of the following government programs would provide partial income to support someone who is permanently disabled?
Affordable Care Act
Americans with Disabilities Act
Social Security
Banks and other companies are willing to issue credit cards because these financial institutions
make money on the interest they charge on unpaid balances
own credit counseling agencies
are required by recent laws to make money available
"I pay my credit card bill in full five-to-seven days before the due date each month!" Someone who does this is likely to have
a very high interest rate
adequate insurance coverage
an excellent credit score
A person's credit report includes his or her
medical history and driving record
history of loans and credit activities
retirement and savings account balances
Which of the following federal laws protects borrowers?
Social Security Act
National Privacy Act
Truth in Lending Act
One example of using credit responsibly is
charging an expensive item that is on sale for one day when cash will be available next week
paying less than the minimum balance on a monthly bill
buying a leather coat with the intention of paying the cost over four years
Credit card transactions are considered a form of borrowing because
consumers need to sign the receipt given by the store
credit results in the money charged being immediately deducted from a bank account
someone else's money is being used in exchange for the promise of repaying in the future
Review the following information on financing a new car that costs $25,000 with a 48-month (four year) loan. 25 year old man: down payment = $5,000, Percentage 5%, payment= $460/month. 30 year old woman: Down payment = $5,000, Percentage 6%, payment = $470/month. Why is one payment more per month
applicant's age
gender discrimination
interest rate
A credit card offers a grace period of 21 days, which means that the card holder
needs to have the payment posted by the 21st day or a late fee will be charged
can miss one payment per year if all other monthly payments that year are made by the 21st day
receives rewards points if the bill is paid before the 21st day
The feature of a fixed-rate mortgage loan that is different from an adjustable-rate mortgage loan is that the fixed-rate mortgage has
an interest rate that remains the same througout the length of loan
an interest rate that changes annually throughout the length of loan
One of the reasons lenders review the credit history of individuals applying for credit card loans is to determine
place of residence
the amount of life insurance coverage
how much is owed
How does credit help borrowers?
Borrowing is not on a person's credit report until all payments are made
A person can buy a big ticket item on credit and use it while paying for it
Buying on credit helps a person to increase their credit score
Four friends each deposited $1,000 in a savings account at their local bank on the same day. After two years, from the date of deposit, the friend who had the most amount of money is the one whose bank compounded interest.
daily
weekly
monthly
Review the information below. Boy: Age 10 deposited $1,000 earning 4% interest. Value at age 20= $1,492.00 Boy: Age 17 Deposited $1,000 earning 6% interest. Value at age 20 = $1,197.00 The 10 year old has more money because the money was deposited
in an insured bank account
at an earlier age
in an account with a higher interest rate
Which of the following is a correct calculation of simple interest on $1,000 at the end of one year?
3% = $30 or $1,030.00
4% = $400 or $1,400.00
5% = $150 or $1,150.00
In addition to a Social Security number or taxpayer ID, which of the following documents will a bank require to open a new account?
Driver's license and a copy of a recent credit report
Proof of citizenship and a recent medical examination
Photo identification and proof of address
Your sister goes to an ATM and withdraws money from her checking account
Debit
Credit
Last month Eric used a card to purchase a new computer from a store. When the bill arrived, he realized he only had enough to make the minimum payment.
Debit
Credit
Jenna used her card to purchase a present for her friend's birthday. When she received her monthly statement, it was $15 more than she anticipated. She then realized that the card's annual fee was added to her balance.
Debit
Credit
You're grocery shopping with your grandma. When paying for the groceries the cashier asks her to enter her PIN number into the kiosk
Debit
Credit
Your mom returned a pair of pants she purchased that were the wrong size. A few days later, she checks her online bank statement to see if the money had been returned to her checking account.
Debit
Credit
The central bank of the United States
Savings Account
Withdrawal
Federal Reserve System
Huntington Bank
Method of borrowing money for a purchase now
Debit Card
Credit Card
Budget
Opportunity Cost
A plan for managing income, saving, and spending
Interest
Budget
Opportunity Cost
Deposit
An amount of money taken out of an account
Credit
Savings Account
Opportunity Cost
Withdrawal
Money paid for the use of someone else's money
Interest
Deposit
Budget
Opportunity Cost
Money taken from the purchaser's checking account electronically
Credit Card
Debit Card
Saving's Account
Budget
The highest-valued choice that is given up when a decision is made
Budget
Interest
Opportunity Cost
Federal Reserve System
An account that pays interest on money saved
Savings Account
Checking Account
Deposit
Interest
An amount of money put into an account
Withdrawal
Interest
Deposit
Opportunity Cost
An account where people can keep their money and write checks
Savings Account
Checking Account
Credit Card
Debit Card
