Seth W. Wk 18: FA QR 2025 FINAL (12/16/2025)

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1. Which of the following transactions will REDUCE your checking account balance immediately?

Using your debit card to pay for groceries at the supermarket

Writing your monthly rent check which you will mail tomorrow

Using your credit card to pay for your school books

Depositing a check at a local bank branch

When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied

Your account will be closed

You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn ($29) + interest

What is the mathematical formula that you would use to describe the financial activity on a bank statement?

Ending Balance = Previous Balance + Deposits + Withdrawals + Fees

Ending Balance = Previous Balance + Deposits - Withdrawals - Fees

Ending Balance = Previous Balance - Deposits + Withdrawals - Fees

Ending Balance = Previous Balance - Deposits - Withdrawals + Fees

Which TWO of the following statements are advantages of online banking?

B & D

A & C

A & B

B & C

How is an online savings account different from a traditional savings account?

An online savings account includes a mobile app, while a traditional savings account does not

Online savings accounts cannot be FDIC insured, whereas traditional savings accounts can

Online savings accounts will only offer electronic statements rather than paper copies

An online savings account is offered by a bank that customers can only access online rather than at a physical bank branch

Fill in the blanks with the correct responses. If you follow the 50-20-30 rule of budgeting, you'll be putting 50% of your monthly income toward _________, 20% of your monthly income toward _, and 30% of your monthly income toward ________.

Savings, needs, wants

Wants, needs, savings

Needs, savings, wants

Needs, wants, savings

Stanley deposits $1,000 into a savings account that pays 1% interest. At the end of the first year, he's earned $10 in interest and there is $1,010 in the account. If the account has simple interest, the 1% interest for year two would be based off . If the account has compounding interest, the 1% interest for year two would be based off ____.(NOTE: The first choice goes in the first blank, the second choice goes in the second blank)

The year one account balance ($1,010); The original deposit ($1,000)

The year one account balance ($1,010); The year one interest ($10)

The original deposit ($1,000);  The year one interest ($10)

The original deposit ($1,000); The year one account balance ($1,010)

Reading through a credit card disclosure (aka the Schumer Box), you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?

With credit card APRs, cardholders like higher APRs because they earn more

When given a range of APRs like this, you can assume most cardholders pay the lowest rate listed

The APR on credit cards is usually fixed so it won't be adjusted as long as you are a cardholder

Your APR will be within that range, depending on the strength of your credit history

When taking out a loan, the shorter your term length, the _ your monthly payments, and the _ the total interest you will pay.

higher, higher

lower, higher

higher, lower

lower, lower

Elizabeth is considering buying a $30,000 car. Which of these financing options will likely lead to the LOWEST MONTHLY payment?

$0 down payment, 6% interest, 60 months

$3000 down payment, 6% interest, 84 months

$3000 down payment, 6% interest, 60 months

$0 down payment, 0% interest, 36 months

Select the statement below that accurately describes a characteristic of a credit card.

They do not charge interest

Making full payments on time every month is the only way to avoid interest charges

You owe the same payment every month

You must have money deposited into a checking account to use the credit card for purchases

As a young adult, all of the following are good strategies for building credit, EXCEPT:

Open a credit card, with your parent or guardian as a cosigner

Become an authorized user on a credit card used by your parent or guardian

Open a checking account, and start using a debit card

Open and use a secured credit card

How can your credit score impact your financial situation?

A high credit score will mean higher rates of return on your investments

Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

If you have no credit history, you're automatically approved for loans you may need

A low credit score will mean lower ATM and overdraft fees

Who tracks all of your credit information?

Federal government

Companies named Equifax, Experian and TransUnion

Lenders

Consumer Financial Protection Board (CFPB)

Each of the following financial products will help you build a credit history EXCEPT...

Auto loan

Secured credit card

Debit card

Credit card

Which best describes the Debt Snowball method for paying off debt?

Only make payments on your smallest debt first, then move on to your second smallest debt, and so on…

Make the monthly minimum payments on all your debts and put any extra cash toward the debt with the lowest balance

Make the monthly minimum payments on all your debts  and put any extra cash toward the debt with the highest balance

Once your debt "snowballs" out of control, hire a certified credit counselor to help get your finances back on track

Which of these options depicts the types of financial aid from MOST attractive to LEAST attractive?

Private loans, Federal loans, Work-study, Grants/Scholarships

Grants/Scholarships, Work-study, Federal loans, Private loans

Federal loans, Grants/Scholarships, Work-study, Private loans

Work-study, Grants/Scholarships, Federal loans, Private loans

Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

His gross and net pay are $2,500.

His gross and net pay are $3,000.

His gross pay is $2,500 and net pay is $3,000.

His gross pay is $3,000 and net pay is $2,500.

Sam has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?

A budget deficit of $4800

A budget surplus of $200

A budget deficit of $200

A budget surplus of $4800

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

Dining out at local restaurants

Expenses for new clothes

Loan payment on a new car

Postponing a purchase for a big-screen TV

Your friend has an interview tomorrow and is seeking his first job. Which of the following represents the WORST piece of advice you can give him?

Do research ahead of time to understand how your role will support the larger organization

Don't ask questions during your interview, because you will come across as uninformed or unqualified

Be prepared to answer tough questions, such as your greatest weakness or a time when you were unsuccessful

Plan to arrive at least 15 minutes early

Aaron realizes he has a budget deficit of roughly $175 at the end of two months in a row. Which of these options makes the most sense for him to fix his problem?

Cancel his cable TV subscription and go out to dinner three fewer times each month with friends

Contribute $100 less to savings each month and $75 less to his retirement fund

Sell his current car and get a less expensive vehicle

Start paying just the minimum monthly payment on his student loan and credit card debt, instead of the extra he's been contributing

Juanita wants to better understand what soft skills are. Which of the following statements do you tell her?

Soft skills are easy to demonstrate through a cover letter and resume.

Soft skills are the skills you need to successfully work with others.

Soft skills are often overlooked by employers so they don’t matter that much.

Soft skills are the specific set of skills you need to complete your job responsibilities.

Your friend Wilma created a LinkedIn profile a while back and would like to use it more often to expand her network and look for new job opportunities. Which of the following should she do?

She should share a picture of her most recent family vacation on her profile.

She should ask for a big favor right after she connects with someone.

She should join numerous groups even if they are outside her interests.

She should reach out to any contacts she has at a company she is interested in joining.

When you review your monthly checking account statement, which statement below would indicate that you deposited more money than you spent?

Your previous balance is higher than your ending balance

Your ending balance is higher than your previous balance

Your fees are greater than your starting balance

Your withdrawals are larger than your fees

Please reply with anything you would like to see change or stay the same for next semester for this class. What worked or what didn't work.

1. Which of the following transactions will REDUCE your checking account balance immediately?

Using your debit card to pay for groceries at the supermarket

Writing your monthly rent check which you will mail tomorrow

Using your credit card to pay for your school books

Depositing a check at a local bank branch

When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed

Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied

Your account will be closed

You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn ($29) + interest

What is the mathematical formula that you would use to describe the financial activity on a bank statement?

Ending Balance = Previous Balance + Deposits + Withdrawals + Fees

Ending Balance = Previous Balance + Deposits - Withdrawals - Fees

Ending Balance = Previous Balance - Deposits + Withdrawals - Fees

Ending Balance = Previous Balance - Deposits - Withdrawals + Fees

Which TWO of the following statements are advantages of online banking?

B & D

A & C

A & B

B & C

How is an online savings account different from a traditional savings account?

An online savings account includes a mobile app, while a traditional savings account does not

Online savings accounts cannot be FDIC insured, whereas traditional savings accounts can

Online savings accounts will only offer electronic statements rather than paper copies

An online savings account is offered by a bank that customers can only access online rather than at a physical bank branch

Fill in the blanks with the correct responses.  If you follow the 50-20-30 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 20% of your monthly income toward _____________, and 30% of your monthly income toward ______________.

Savings, needs, wants

Wants, needs, savings

Needs, savings, wants

Needs, wants, savings

Stanley deposits $1,000 into a savings account that pays 1% interest. At the end of the first year, he's earned $10 in interest and there is $1,010 in the account. If the account has simple interest, the 1% interest for year two would be based off ____________. If the account has compounding interest, the 1% interest for year two would be based off ________________.(NOTE: The first choice goes in the first blank, the second choice goes in the second blank)

The year one account balance ($1,010); The original deposit ($1,000)

The year one account balance ($1,010); The year one interest ($10)

The original deposit ($1,000);  The year one interest ($10)

The original deposit ($1,000); The year one account balance ($1,010)

Reading through a credit card disclosure (aka the Schumer Box), you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?

With credit card APRs, cardholders like higher APRs because they earn more

When given a range of APRs like this, you can assume most cardholders pay the lowest rate listed

The APR on credit cards is usually fixed so it won't be adjusted as long as you are a cardholder

Your APR will be within that range, depending on the strength of your credit history

When taking out a loan, the shorter your term length, the _______   your monthly payments, and the _______  the total interest you will pay.

higher, higher

lower, higher

higher, lower

lower, lower

Elizabeth is considering buying a $30,000 car.  Which of these financing options will likely lead to the LOWEST MONTHLY payment?

$0 down payment, 6% interest, 60 months

$3000 down payment, 6% interest, 84 months

$3000 down payment, 6% interest, 60 months

$0 down payment, 0% interest, 36 months

Select the statement below that accurately describes a characteristic of a credit card.

They do not charge interest

Making full payments on time every month is the only way to avoid interest charges

You owe the same payment every month

You must have money deposited into a checking account to use the credit card for purchases

As a young adult, all of the following are good strategies for building credit, EXCEPT:

Open a credit card, with your parent or guardian as a cosigner

Become an authorized user on a credit card used by your parent or guardian

Open a checking account, and start using a debit card

Open and use a secured credit card

How can your credit score impact your financial situation?

A high credit score will mean higher rates of return on your investments

Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

If you have no credit history, you're automatically approved for loans you may need

A low credit score will mean lower ATM and overdraft fees

Who tracks all of your credit information?

Federal government

Companies named Equifax, Experian and TransUnion

Lenders

Consumer Financial Protection Board (CFPB)

Each of the following financial products will help you build a credit history EXCEPT...

Auto loan

Secured credit card

Debit card

Credit card

Which best describes the Debt Snowball method for paying off debt?

Only make payments on your smallest debt first, then move on to your second smallest debt, and so on…

Make the monthly minimum payments on all your debts and put any extra cash toward the debt with the lowest balance

Make the monthly minimum payments on all your debts  and put any extra cash toward the debt with the highest balance

Once your debt "snowballs" out of control, hire a certified credit counselor to help get your finances back on track

Which of these options depicts the types of financial aid from MOST attractive to LEAST attractive?

Private loans, Federal loans, Work-study, Grants/Scholarships

Grants/Scholarships, Work-study, Federal loans, Private loans

Federal loans, Grants/Scholarships, Work-study, Private loans

Work-study, Grants/Scholarships, Federal loans, Private loans

Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

His gross and net pay are $2,500.

His gross and net pay are $3,000.

His gross pay is $2,500 and net pay is $3,000.

His gross pay is $3,000 and net pay is $2,500.

Sam has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?

A budget deficit of $4800

A budget surplus of $200

A budget deficit of $200

A budget surplus of $4800

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

Dining out at local restaurants

Expenses for new clothes

Loan payment on a new car

Postponing a purchase for a big-screen TV

Your friend has an interview tomorrow and is seeking his first job. Which of the following represents the WORST piece of advice you can give him?

Do research ahead of time to understand how your role will support the larger organization

Don't ask questions during your interview, because you will come across as uninformed or unqualified

Be prepared to answer tough questions, such as your greatest weakness or a time when you were unsuccessful

Plan to arrive at least 15 minutes early

Aaron realizes he has a budget deficit of roughly $175 at the end of two months in a row. Which of these options makes the most sense for him to fix his problem?

Cancel his cable TV subscription and go out to dinner three fewer times each month with friends

Contribute $100 less to savings each month and $75 less to his retirement fund

Sell his current car and get a less expensive vehicle

Start paying just the minimum monthly payment on his student loan and credit card debt, instead of the extra he's been contributing

Juanita wants to better understand what soft skills are. Which of the following statements do you tell her?

Soft skills are easy to demonstrate through a cover letter and resume.

Soft skills are the skills you need to successfully work with others.

Soft skills are often overlooked by employers so they don’t matter that much.

Soft skills are the specific set of skills you need to complete your job responsibilities.

Your friend Wilma created a LinkedIn profile a while back and would like to use it more often to expand her network and look for new job opportunities. Which of the following should she do?

She should share a picture of her most recent family vacation on her profile.

She should ask for a big favor right after she connects with someone.

She should join numerous groups even if they are outside her interests.

She should reach out to any contacts she has at a company she is interested in joining.

When you review your monthly checking account statement, which statement below would indicate that you deposited more money than you spent?

Your previous balance is higher than your ending balance

Your ending balance is higher than your previous balance

Your fees are greater than your starting balance

Your withdrawals are larger than your fees