Financial Math Unit 3 Test

Front

What is the 50-30-20 rule of budgeting?

Back

The 50-30-20 rule is a budgeting guideline that suggests allocating 50% of your income to needs, 30% to wants, and 20% to savings.

Front

What transaction will immediately reduce your checking account balance?

Back

Using your debit card to pay for groceries at the supermarket will immediately reduce your checking account balance.

Front

What is an advantage of online banking?

Back

Using online banking allows you to request transfers, pay bills, and automate your savings without visiting the bank branch.

Front

What should you do if your bank account balance drops unexpectedly?

Back

Contact your bank immediately as it may indicate that your account has been hacked.

Front

In which scenario is a person-to-person payment app NOT appropriate?

Back

Mia pays Cheesy Pizza Co. for a pizza she orders on their website; this is not a person-to-person transaction.

Front

Define 'needs' in the context of budgeting.

Back

Needs are essential expenses required for basic living, such as housing, food, and healthcare.

Front

Define 'wants' in the context of budgeting.

Back

Wants are non-essential expenses that enhance your lifestyle, such as entertainment, dining out, and luxury items.

Front

What is the purpose of savings in budgeting?

Back

Savings are set aside for future use, emergencies, or specific goals, helping to ensure financial security.

Front

What is a debit card?

Back

A debit card is a payment card that deducts money directly from your checking account to pay for purchases.

Front

What is online banking?

Back

Online banking is a service that allows customers to conduct financial transactions via the internet.