True/False
Indicate whether the sentence or statement is true
or false.
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1.
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Direct deposit,
where your paycheck is automatically deposited into your bank account, is a good budgeting
idea.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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2.
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Which of the
following expenses is typically a flexible expense? a. | rent | b. | insurance | c. | utilities | d. | entertainment | | |
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3.
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Which of the
following should be considered when choosing a checking account? a. | fees | b. | convenience | c. | interest | d. | all of the above | | |
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4.
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The point of
reconciling your checkbook is: a. | engaging in a nostalgic, time-honored
tradition | b. | chastising yourself over the amount of money you’ve
spent | c. | checking your account for bank mistakes | d. | there is no point | | |
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5.
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When interest is
paid on the original deposit and also on the accumulated interest, this type of interest is
called: a. | simple | b. | complex | c. | extra | d. | compounded | | |
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6.
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One of the safest
forms of savings are: a. | stocks | b. | bonds | c. | mutual funds | d. | credit cards | | |
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7.
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Which of the
following is NOT a selling point of credit cards? a. | You don’t have to carry much cash
around. | b. | You get a record of your purchases. | c. | You may fall into impulsive buying
patterns. | d. | You can accumulate airline miles and cash back
rewards. | | |
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8.
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In credit card
terminology “APR” stands for: a. | A Person’s Record | b. | Allowance Per Routine | c. | Average Prime Rate | d. | Annual Percentage Rate | | |
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9.
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You should never
borrow more than this percentage of your annual net income (after taxes):
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10.
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Which of the
following pieces of personal information appear on your credit report? a. | identifying information | b. | credit history | c. | public record information | d. | all of the above | | |
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