Final Exam Review

What is collateral?

• • Money you are saving in the bank.

• • If a person doesn't pay their credit card, lenders will come and take your purchases.

• • Something pledge as security for repayment of a loan.

• A type of investment.

What type of tax system does the United States use?

• • Progressive

• • Proportional

• • Recessive

• • Regressive

When a retirement plan says you can put money in it "tax deferred," what does that mean? 

• You pay taxes on your income today and then contribute to your retirement plan.

• You pay taxes when you retire and are withdrawing money from your retirement account.

Which of the following people should lease a vehicle instead of buying one?

• • Caleb wants to paint his car matte black and add matching rims.

• • Keshona wants to drive across the United States to see what each state has to offer.

• • Nazar likes a new car every three years.

• • Nasya wants an economical car with a reasonable price.

If you suspect you are a victim of identity theft, what should you do?

• • File a police report.

• • Close any accounts you think have been tampered with.

• • Look for loans and/or debts that you did not incur.

• • All of the above are things you should do if you suspect you are a victim of identity theft.

Which word correctly defines "Bounced Check."

• • Check signed by someone other than the payee.

• • Check that you have written but has not been cleared by the bank for payment.

• • Check that is more than 6 months old.

• • Check drawn on an account with insufficient funds.

Which of the following would be the best example of liquid money.

• • checking account

• • bonds

• • stocks

• • CD

Which of the following is NOT an advantage of online banking?

• • access 24 hours a day

• • record keeping made easy 

• • making relationships with bank employees

• • bill pay services

Which of the following is a reason you may be charged a fee on your bank statement?

• • You used your ATM at a bank not associated with your bank.

• • You pay all your bills on time.

• • You never take a cash advance on your credit card.

Which of the following is NOT a credit reporting agency?

• • Experian 

• • Equifax 

• • Trans Union

• • Trans Atlantic