Financial literacy terms and stuff

Question 1

What is a common advantage of using credit?

Answer 1

Ability to obtain needed items now

Question 2

What is a bank card?

Answer 2

A credit card issued through a credit union.

Question 3

Time for paying an account without interest charge

Answer 3

Grace period

Question 4

What does comparing the APR among several credit cards allow?

Answer 4

ability to obtain the lowest interest rate

Question 5

What is incorrect when endorsing a check?

Answer 5

Sign your name in pencil so that if you change your mind about cashing or depositing the check, you can erase your signature.

Question 6

A nonprofit financial institution that is owned by its member and organized for their benefit that offers a range of services which may include checking accounts, loans, and credit cards.

Answer 6

Credit Union

Question 7

An automatic deposit of net pay from an employer to an employee’s designated bank account instead of issuing a paper check.

Answer 7

Direct deposit

Question 8

The process in which interest is earned on the principal and on any previously earned interest

Answer 8

Compound interest

Question 9

What is the difference between a credit card and a debit card?

Answer 9

A debit card requires a PIN but a credit card does not.

Question 10

When you receive your checking account bank statement each month, what items might be on it that you do NOT show in your account register?

Answer 10

Monthly service charges for the checking account.

Question 11

What will an ATM card allow you to do?

Answer 11

Purchase merchandise at a POS terminal, makes deposits to your account, and withdraw funds from your account.

Question 12

What will an ATM card NOT allow you to do?

Answer 12

Transfer funds between your accounts.

Question 13

What must you have to fulfill the identification process of opening an account at a bank?

Answer 13

Social Security Number, Driver’s license, and birth certificate.

Question 14

What does using a credit card to buy goods or services not force you to do?

Answer 14

Spend future income, specific date to be paid back, or increase your future income.

Question 15

What are some examples of credit reporting agencies?

Answer 15

Experian, Equifax, and TransUnion

Question 16

A FICO score is based on what category?

Answer 16

Payment history amounts owned, and types of credit used.

Question 17

What is a cash advance?

Answer 17

Obtaining a loan against the available credit on your account

Question 18

What is an example of a revolving credit account?

Answer 18

A Visa Card

Question 19

What is the largest source of income for the federal government?

Answer 19

Income Taxes

Question 20

Social Security taxes, medicare taxes, and income taxes are ___ from gross pay.

Answer 20

payroll deductions

Question 21

What should you do if you have trouble paying your bills?

Answer 21

Call your creditors

Question 22

Monthly car payment

Answer 22

variable expense

Question 23

rent payment of an apartment

Answer 23

Fixed expense

Question 24

The total monies a business has after paying cost of goods sold and its selling, and all administrative and general expenses.

Answer 24

Operating Income

Question 25

An employee who is paid biweekly (every two weeks) will receive an extra paycheck two months during a fiscal (tax) year.

Answer 25

True

Question 26

A company sold $100 of merchandise, what does that money mean?

Answer 26

Revenue

Question 27

anything you own that adds financial value, as opposed to a liability, which is money you owe. (Owning a house)

Answer 27

Asset

Question 28

Paying your workers is an

Answer 28

Expense

Question 29

A competition increases, prices will

Answer 29

Usually decrease

Question 30

A phase marked by a long period of high unemployment, weak consumer sales, business failures is-

Answer 30

Depression

Question 31

The costs of operating a business are the

Answer 31

expenses

Question 32

What does it mean to diversify savingS!

Answer 32

is a way to manage risk in your portfolio by investing in a variety of asset classes and in different investments within asset classes.

Answer 33

Amortization

Answer 34

Account

Answer 35

Liquidity

Question 36

what will most likely take up to 20-30% of your monthly budget?

Answer 36

HOUSING