Financial Literacy

Which of the following is an advantage of using a credit card?

• Interest is charged for the use of a credit card.

• Consumers can purchase things now, and pay for them later in the event of an emergency.

• You could be a victim of identity theft.

An identification card issued by

a bank that allows a user to

immediately use money from an

account. You have a personal

identification number (PIN) to

keep it safe.

• Check

• Credit card

• Debit card

Investment

• Written order instructing your bank to pay money from your account to another party.

• Something acquired with the goal of making money.

• A promissory note to repay a certain amount of money from your account to another party.

If Sammy’s expenses are greater than his income, what must he do to balance his budget?

• Earn more money
• Spend less money on expenses
• Earn more money AND spend less
• None of the above

Why is maintaining good credit important?

• Can help you graduate from college

• Allows you to carry more cash than usual

• Allows you to buy expensive items and pay over time

• Might cause your interest rates to be raised

Which of the following is considered an advantage to using a debit card to make purchases?

• Debit cards are convenient and easy to carry around.
• Purchases can be made quickly and easily.
• You can use many ATMs to get cash.
• All of the above.

FDIC insures you how much money per account?

• 250,000.00

• 300,000.00

• 400,000.00

• 25,000.00

What is money you earn?

• income

• budget

• assets

• net worth

What is assets minus liabilities?

• income

• budget

• net worth

• annual income

What is a loan?

• A fee for maintaining or servicing your loan account

• Money you borrow but must also repay

• Something valuable that you own and can sell for cash

• The cost of borrowing money