Personal Finance Final Review

Front

All of the following would reduce Maria’s checking account balance, EXCEPT… Writing a check to pay her rent, Using her debit card to buy groceries, Setting up an automatic payment for her utility bill

Back

Receiving a direct deposit from her employer

Front

Usually, ______ are easier to reduce because they change monthly, compared to ______ which are set costs you pay monthly

Back

variable expenses; fixed expenses

Front

To calculate the net price for a college, you...

Back

Subtract any grants and scholarships from the sticker price

Front

What is the benefit of compounding in savings accounts?

Back

It yields larger returns than simple interest

Front

Shirley’s take-home pay, aka her _____, was lower than she expected because of _____ taken out for taxes and retirement.

Back

Net pay; deductions

Front

How is putting money in a savings account different from investing in the stock market?

Back

Saving is best for short-term needs; investing is best for long-term goals

Front

Which of the following best describes a credit report? A detailed record of your borrowing and repayment history, A summary of your monthly income and expenses, A list of all the bank accounts you have opened, A document that shows your current credit and balances only

Back

A detailed record of your borrowing and repayment history

Front

Compared to alternative banking services (e.g. check cashing), traditional banks…

Back

Offer more consumer protections

Front

Sayeed has an extra $100 to pay down his debts. To minimize his total interest, which debt should he pay off first? His car loan: $2,400 at a 7.2% interest rate, His credit card: $2,500 at a 19.5% interest rate, His federal student loans: $4,300 at a 6.53% interest rate, His personal loan: $500 at a 3% interest rate

Back

His credit card: $2,500 at a 19.5% interest rate

Front

Which of the following is TRUE about a secured credit card? Options: Secured credit cards have a spending limit equal to the deposit amount, Secured credit cards do NOT build your credit history, Secured credit cards are higher risk for a bank than other credit cards, Secured credit cards usually have a higher credit limit than other cards

Back

Secured credit cards have a spending limit equal to the deposit amount