Economics Final Exam

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

All of the following are common benefits of mobile banking, EXCEPT… Transfer money without visiting a bank branch, Deposit checks using your phone’s camera, Check your account balance at any time

Back

Avoid all banking fees, like overdraft fees

Front

Mia’s renters insurance has a $15 premium, $250 deductible, and $100,000 coverage limit. Her $550 bike is stolen. Who pays?

Back

Mia pays $250; her insurance pays $300

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

Which of the following actions is most recommended after a job interview?
- Submitting your cover letter
- Sending a personalized thank you message
- Sharing salary information from your current job
- Waiting 2-3 weeks before following up

Back

Sending a personalized thank you message

Front

Which answer correctly pairs the type of auto insurance coverage with its description? Liability coverage: covers the cost of your injuries from a crash, Collision coverage: covers the cost of damages to your car from a crash, Personal injury protection: covers the cost of damages to other people and vehicles, Comprehensive coverage: covers the cost of damages if the other driver doesn’t have insurance

Back

Collision coverage: covers the cost of damages to your car from a crash

Front

Sayeed has an extra $100 to pay down his debts. To minimize his total interest, which debt should he pay off first? Options: 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

How are student loans different from scholarships and grants (S&G)?

Back

Loans need to be repaid; S&G do not.

Front

Which of the following correctly pairs the term with its definition? Principal: A part of the item's cost that is paid at the time of purchase, Interest Rate: The rate charged for borrowing money, Down payment: The original amount of money borrowed, Cosigner: A valuable item that the lender can take as a form of payment

Back

Interest Rate: The rate charged for borrowing money