Internship 9 weeks exam study guide

Jasmine just received her paycheck. To manage her money, she categorized spending by wants, needs, and saving and debt. What money management strategy is jasmine following?

50-30-20 rule

Which of the following is accurate about the benefits and risks of using credit cards to make purchases

Credit cards come with fraud protection, but credit card numbers can be copied by identity thieves

Margo wants to purchase a new car. She doesn't have enough in saving to cover the cost. She decided to look into loans from her bank. How can taking out a loan help margo with her car purchase?

It can help by spreading out the expense over time.

how is money divided using the 50-30-20 method?

Needs, wants, savings

What is a risk of using cash?

Not having fraud protection

Which is a god way to make an informed decision about a purchase?

Read reviews from other consumers

Which review of an online clothing store is more trustworthy and why? review A states: "All 5 of the shirts were high quality but small. Order a size up" (verified purchase). review B states: "I love everything from this site. Don't miss out on their great sales" (sponsored review).

Review A is more trustworthy because it was a verified purchase

Elliott renovates his home using a loan that requires him to sign over the title to his car if he doesn't pay as promised. What type of loan does Elliott have?

Secured loan

Which best describes the difference between secured and unsecured loans?

Secured loans require collateral, while unsecured loans do not.

How do loan terms affect the cost of credit.

Shorter loan terms have higher monthly payments and lower overall interest.

Alida works from home. White item is a want for her?

Streaming service

Are sponsored reviews or verified purchaser reviews more reliable?

Verified purchaser reviews are more reliable becaue the reviewer isnt being paid for a positive review

Which of the following best describes a loan?

a borrower promises to repay money from a lender

what is the benefit of a savings account?

a savings account earns interest.

how can a budget help you reach your financial goals

budgeting helps track spending and increases savings

Dominic has four unexpected espenses including a broken TV, increased insurance costs, a broken car and a hole in a shoe. Which of these would be considered an emergency?

car repairs

which of the following items describe features of a checking account

debit card

using your mobil banking app you can

deposit checks

Lilly wants to save money for unexpected situations like emergencies. Which savings feature would benefit her the most?

easy access to her money

Tarik works in a restaurant and gets paid in cash. He's used to dealing in cash, but he needs a system to help him divide his cast each month. What money management strategy should tarik use?

envelope method

alejandro realized that he forgot his wallet when he was about to pay at a store. He only has his smartphone with him. How can he make a payment with money from his checking account?

he can use his mobile payment app with his phone.

Emery applies for a loan online to help cover living costs while in college. Later, she notices her payments aren't impacting the balance much. Looking closer, she finds extra fees in the agreement. Which type of predatory loan offer did emery experience?

hidden fees

Aisha needs a loan to finance her latest startup. She wants a loan with the lowest overall interest costs. She's considering a 3-year loan with an 8% fixed interest rate or a 5-year loan with a 6% fixed interest rate. Why would Aisha pick the 3-year loan?

it has a lower total cost

What is the benefit of a checking account?

it helps you spend money without carrying cash

you favorite cousin briar's birthday is coming up, and you'd like to gift her some money from your checking account. What is the benefit of gifting money via check?

it is safer because you can trace the transaction

Louie just opened his first savings account. What is one way that it can help him manage his money?

it will keep his money safe

Sawyer just got his learner's permit and can't wait to buy his first car. he received a large sum of oney for his birthday and put it in an account to help it grow. he opened an account that required a large initial deposit, but that pays a high interest rate and allows him easy access to his money. What kind of account did sawyer open?

money market account (MMA)

Carlos wants to start a budget. he is planning on using the 50-30-20 method. he categorizing his expenses. how should he categorize paying his insurance?

needs

in the 50-30-20 rule, 50% of your income should be spent on

needs

what should be prioritized when creating a budget

needs and wants

jobs and careers that require degrees or certificates generally ___ jobs that require little or no training

pay more money than

A lender offers Frank a high-interest loan based on how much he makes at his job. He'll have to pay it back quickly too, within the next month. Which type of predatory loan offer did Frank experience?

payday loan

if yoru earnings potential is higher than the cost of yor higher education, you will have a

positive return on investment for higher education

what can a budget help you with

prioritize expenses and track spending

what does "pay yourself first"mean

put money in your savings account before you pay other expenses

Which of the following are things a skilled consumer does?

research before buying, buy only whay you need, consider unit prices, choose the best payment method

keira is new to earning money and savings. She doesnt have a lot of money to open an account. Which saving option would be best for her?

savings account

camilla just opened a new checking account. How can it help her better manage her money?

she can check her transaction history easily

Which list describes needs?

shelter, warmth, food

A 10-ounce bottle of your faorite lotion that you use each day costs $9.50. The 5-ounce bottle only cost $5. Which is the better deal and why?

the 10-ounce bottle is a better deal because the price per unit is lower

which of these is something to consider when trying to get a positive return on investment for higher education?

the total cost of attendance

Why should you work to be an informed consumer?

to get the most value for your money

the total cost of attending a university includes

tuition, housing, food, books, and other costs

to deposit a check using a mobil banking app you have to

upload pictures of your signed check

carol became an accountant by starting her training at a community college, followed by transferring to a bachelor's degree program at her local public university. How likely is it that she will have a positive ROI?

very likely, because she spent less money the first two years of college and is currently employed.

overdraft protection helps you cover a purchase in your checking account

when you don't have enough funds

why do financial institutions offer you higher interest rates for certificates of deposit?

you must keep your money in the account for a set amount of time

A positive return on investment for education happens when

your earnings potential is higher than the cost of your education