Data & Financial Literacy Midterm Review #2

Front

What is the responsibility of a credit card holder if their card is lost and reported immediately?

Back

The cardholder is typically not responsible for any unauthorized charges made after reporting the card lost.

Front

How do you calculate the total cost of an item after a discount and sales tax?

Back

Total Cost = (Original Price - Discount) + Sales Tax.

Front

What is an overdraft fee?

Back

An overdraft fee is a charge incurred when a bank account balance goes below zero due to a transaction.

Front

How do you calculate the discount amount on a sale?

Back

Discount Amount = Original Price x Discount Rate.

Front

What is the formula to reconcile a bank statement?

Back

Ending Balance = Check Register Balance + Outstanding Deposits - Outstanding Checks.

Front

What is the sales tax rate applied to a purchase?

Back

Sales tax is a percentage of the purchase price added to the total cost.

Front

What does it mean to purchase an item on an installment plan?

Back

An installment plan allows a buyer to pay for an item over time in smaller, regular payments.

Front

How do you determine the monthly payment amount on an installment plan?

Back

Monthly Payment = Total Cost / Number of Payments.

Front

What is the significance of a down payment in a purchase?

Back

A down payment is an initial payment made when buying an expensive item, reducing the amount financed.

Front

What is the difference between a service fee and a maintenance fee?

Back

A service fee is charged for specific services, while a maintenance fee is a regular charge for account upkeep.