Personal Finance Final Exam - Summer School

Front

Which of the following transactions will REDUCE your checking account balance immediately? Options: Writing your monthly rent check which you will mail tomorrow, Using your debit card to pay for groceries at the supermarket, Using your credit card to pay for your school books, Depositing a check at a local bank branch

Back

Using your debit card to pay for groceries at the supermarket

Front

When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

Back

You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn ($29) + interest.

Front

What is the mathematical formula that you would use to describe the financial activity on a bank statement?

Back

Ending Balance = Previous Balance + Deposits - Withdrawals - Fees

Front

Which TWO of the following statements are advantages of online banking? A & B, B & C, B & D, A & C

Back

B & C

Front

How is an online savings account different from a traditional savings account?

Back

An online savings account is offered by a bank that customers can only access online rather than at a physical bank branch.

Front

If you follow the 50-20-30 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 20% of your monthly income toward _____________, and 30% of your monthly income toward ______________.

Back

Needs, savings, wants

Front

If Stanley deposits $1,000 into a savings account that pays 1% interest, the 1% interest for year two would be based off ____________ for simple interest and ________________ for compounding interest.

Back

The original deposit ($1,000); The year one account balance ($1,010)

Front

Reading through a credit card disclosure (aka the Schumer Box), you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?

Back

Your APR will be within that range, depending on the strength of your credit history.

Front

Elizabeth is considering buying a $30,000 car. Which of these financing options will likely lead to the LOWEST MONTHLY payment? Options: $3000 down payment, 6% interest, 84 months; $3000 down payment, 6% interest, 60 months; $0 down payment, 6% interest, 60 months; $0 down payment, 0% interest, 36 months

Back

$3000 down payment, 6% interest, 84 months

Front

Select the statement below that accurately describes a characteristic of a credit card: You owe the same payment every month, You must have money deposited into a checking account to use the credit card for purchases, Making full payments on time every month is the only way to avoid interest charges, They do not charge interest

Back

Making full payments on time every month is the only way to avoid interest charges