Unit 5: Money and Credit Management Test

Fixed expenses

• Is a spending plan for managing your money

• Income from all possible sources

• Expenses that equal all the fixed & variable expenses.

• Expenses that remain the ssame month after month EX: mortgages, rent, car payments insurances

Variable expenses

• Necessary things or items that are paid monthly

• Expenses that increase/decrease monthly/yearly EX: Utilities, food, entertainment, internet, TV provider

• Is a spending plan for managing your money that includes income and expenses.

• Expenses that remain the same over a period of time.

(a)   is an example of a fixed expense.

• Gas
• Groceries
• Mortgage/rent
• Emergency medical bills

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EPF.MCM.1.1

EPF.MCM.1

If an expense can NOT be removed from your budget to save money, it is considered a _____.

• Income

• Want

• Need

• Savings

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EPF.MCM.1

EPF.MCM.1.1

If an expense can be cut from your budget to save money, it is considered a ______.

• want

• need

• income

• savings

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EPF.MCM.1

EPF.MCM.1.1

How do credit card companies make money?

• By charging late fees and interest to their customers.
• By making you pay an extra dollar on every purchase.
• By charging late fees and interest to stores and other businesses.
• By earning interest on the money they have saved up.

The cost of credit expressed as a yearly interest rate is known as:

• Annual Percentage Rate (APR)
• Annual Fee
• Penalty APR
• Introductory Rate

You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?

• American Express
• Chase Sapphire
• Neither
• All of the above

What is a good practice when it comes to credit cards?

• getting as many credit cards as possible

• paying only the minimum

• charging anything you want

• paying the amount charged in full each month

What does the offer 0% APR mean?

• There will never be any interest on your loan.

• There will be a short period of time where there is no interest but there is only temporary

• There is no down payment on your purchase

• You only have to pay the interest on the loan not pay the loan back