Financial Allocation and Decision Making

What would be the effect of low interest rates on credit cards?

• Fewer people would use credit cards

• More people would use cash

• More people would use credit cards

• People would stop spending money

If a student must borrow money for college, which federal loan offers the best deal (repayment and interest rates)

• Subsidized Stafford Loan

• Plus Loan

• Perkins Loans

• Unsubsidized Stafford Loan

What does FAFSA mean?

• Free Application for Federal Student Aid

• Free Application for Free Student Aid

• Federal Application for Free Student Aid

• Free Application for Financial Student Aid

More and more people are using credit and debit cards to buy goods and services. Therefore, the use of _________ has become less popular.

• loans

• checks

• money orders

• money grams

When you think about similarities and differences between debit and credit cards, which statement shows the differences between debit and credit cards?

• Credit cards deduct from bank account balances

• Credit cards have monthly bills, and debit cards do not monthly bills

• Credit cards deduct from you savings account while debit cards deduct from checking

• Everyone is given a credit card by the bank but has to apply for a debit card

What is one method to avoid paying high interest rates on your credit card balance?

• Use only credit cards issued by your banks

• Pay for half the purchase with your debit card and the other half with your credit card

• Pay the full balance of the credit card purchase by the due date.

• Pay the full balance of the credit card

What is a credit card?

• A card that allows you to pay the balance over a period of time, subject to interest

• A form of financial aid that does not have to be repaid

• A card that immediately deducts funds from your checking account

• The removal of money from a bank account

What does zero liability protection means?

• Consumers are not responsible for unauthorized transactions if their cards are lost or stolen.

• Cards are guaranteed to be replaced within 3 business days of being reported lost or stolen

• Consumers are given a replacement card for free if their cards are lost or stolen

• All stolen cared a guaranteed to be found

The general term used to describe money received for college/higher education

• Financial AED

• Finances

• Financed Education

• Financial Aid

Tyler works part time. He wants to have money for college when he graduates so he won't have to borrow money.

• credit card
• debit card
• savings account