Financial Literacy Exam Review

Which of these is a variable expense?

• Electricity bill
• Rent
• Insurance
• House Payment

Overdraft protection helps you cover a purchase in your checking account ______________.

• when you lost your debit card
• when you don't have enough funds
• only if you are investing with your money
• only if you are paying with a mobile payment app

Which payment method creates a debt that you have to pay back later?

• Debit Card
• Gift Card
• Credit Card
• Bank Card

How is an advertisement different from a comment from a regular consumer?

• There is not any differece.
• The advertisement may have been posted by the seller.
• The advertisement is likely one-sided.

In the 50/30/20 method of budgeting, what percent of your money should be spent on needs

• 50%
• 30%
• 20%
• 100%

In order to make a budget, you don't need to track your spending.

• True
• False

The cost for one unit of an item

• Opportunity cost
• Variable expense
• Unit price
• Fixed expense

Which of the following is NOT a need?

• Food
• Shelter
• Brand name clothes
• Clothes

Which best describes the difference between secured and unsecured loans?

• Secured loans require collateral, while unsecured loans do not
• Secured loans usually have higher interest rates than unsecured loans
• Secured loans do not appear on your credit report, while unsecured do
• Secured loans have more flexible payment plans than unsecured loans

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

• debit card
• Fixed expenses
• Salary
• credit card