Economics: Personal Finance 2

The card you use to both access funds in your bank account and pay for goods and services is:

• a credit card

• a birthday card

• a gift card

• a debit card

Writing a check is the same thing as:

• making a withdrawal

• getting the bank to issue a cashier's check

• using a debit card

• using a credit card

When I use my debit card, the money is almost immediately taken from my account.

• true

• false

Another name for an overdraft fee is non-sufficient funds.

• true

• false

You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

• Compounding 1 time per year

• Compounding quarterly

• Compounding monthly

• Compouding daily

How do people get trapped in the payday loan cycle?

• Customers usually only need to borrow money once

• Lenders typically give loans out with a low APR

• Customers may visit several payday loan lenders to get $

• Lenders typically give out long-term loans

If you decide to pawn an item of yours, which of the following is TRUE?

• You will not pay extra charges besides the APR

• The loan amount is usually = to the value of your item

• You cannot sell an item to a pawnshop

• If you don't come back for you item, the pawnshop keeps it

What is a risk of co-signing a loan for a family or friend?

• You are likely to get a higher APR

• You have a shorter loan term

• You become the primary borrower on the loan

• You may be held responsible for the debt

Short‐term loan that provides immediate cash by securing a borrower’s written check or receiving authorization for automatic withdrawal from the borrower’s depository institution account.

• Title loan
• Payday loan
• Refund anticipation loan
• Pawn loan

Short‐term loan that provides immediate cash by securing a borrower’s written check or receiving authorization for automatic withdrawal from the borrower’s depository institution account.

• Title loan
• Payday loan
• Refund anticipation loan
• Pawn loan