Personal Finance – Final Part 2–Spring 2015
Name
Matching
1. The signature of the payee on the back of a check.
2. “Brand A, $2.98 per pound; Brand B, $3.10 per pound.”
3. Refusing to buy a companies product because you dislike how they do business.
4. Maximum amount of purchases a person can charge at any given time.
5. Safeguard against unexpected expenses.
6. Party to whom a check is written.
7. Making purchases on the spur of the moment.
8. a word, picture or logo on a product that helps consumers distinguish it from similar products.
9. Agency that tests new health products.
10. Document which gives people legal right to conduct a business or practice a profession.
11. Party on whose account the check is written.
12. A plan for using your money in a way that best meets your wants and needs.
13. Opportunity to obtain money, goods or services now in exchange for a promise to pay in the future.
14. A measure of a person’s ability and willingness to pay.
15. A percentage of the total cost of an item that is paid when an installment contract is signed.
16. Financial institution that holds the drawers account.
17. A bank’s record of all the transactions in a person’s checking account.
a. impulse buyingg. creditm. savings
b. unit pricingh. credit limitn. bank statement
c. brand namei. credit ratingo. drawee
d. boycottj. down paymentp. payee
e. licensek. endorsementq. drawer
f. Food and Drug Admin.l. budget
Multiple Choice
18. A legal document that states the rights and responsibilities agreed to by the consumer and the store or manufacturer is called a
a. warranty
b. license
c. receipt
19. Checking the price and quality of a good or service in more than on store is called
a. searching
b. comparison shopping
c. hunting
20. Recycling means
a. collecting products for processing so they can be used again.
b. using fewer plastic products and newspapers.
c. buying products which have little or no packaging.
21. A person who has purchased a defective product may wish to return it for a full
a. credit
b. refund
c. debit
22. Consumers buy many items on credit because
a. credit is cheaper than paying cash.
b. credit enables them to use items sooner.
c. that is the only way many items are sold.
23. Credit used for business purposes is called
a. personal credit
b. commercial credit
c. bank credit
24. The person or business that lends money or provides credit is the
a. creditor
b. debtor
c. payee
25. An annual percentage rate (APR) of 16% means you pay
a. $16 per year on every $100 you owe
b. $16 per month on every $100 you owe
c. A $16 annual fee on your account.
26. Which of the following is not a tip for investing?
a. Don’t be greedy
b. Invest late
c. Set goals and limits
27. Which type of auto insurance covers injuries to individuals not in your vehicle?
a. Bodily Injury
b. Medical Payments
c. Comprehensive
28. Which type of auto insurance covers damages to your vehicle due to an accident?
a. Collision
b. Uninsured Motorist
c. Comprehensive
Short Answer
- Jan’s freezer broke yesterday and she is in need of a new freezer. She has $400 saved that she could use to buy the freezer or she could use credit to buy it now and pay later. Give the advantages and disadvantages of both choices. What do you think Jan should do? (+3)
- Do you think a computer is useful in keeping track of your spending? Explain why or why not. (+3)
- When a person uses credit, is he or she really borrowing money? Explain your answer. (+3)
- List 4 different parts of a check and explain what each part represents. (ex. Check #) (+8)
- You are trying to decide whether to purchase the 32 oz canister of grape jelly for $3.69 or the 48 oz canister for $4.48. Which is the better buy? Please show how you determined the better buy. (+3)
- You have saved $1000 to pay down on a new computer. The computer costs $2450. You will need to finance the rest at 10% interest over 2 years. (+5)
What is the down payment?
What is the Principal?
What is the finance charge?
What is the total amount financed?
What is the monthly payment?
CHECKING
Fill out the following checks, deposit ticket and check register with the given information.
Beginning check register balance is $325.00.
February 1 – You wrote check # 302 to Verizon Wireless for your monthly cell phone bill in the amount of $87.75.
February 2 – You made a deposit that included 3 ten dollar bills, 1 twenty dollar bill, 3 quarters and 1 check #400 for $105.00.
February 4 – You bought a new pair of shoes at Finish Line for $82.50 and wrote a check #303.