Final Exam Review Unit 4: Personal Finance

1. What are debit cards used to do? withdrawing money from a checking account from an ATM making an automatic payment depositing money into a checking account

2. Explain how a person keeps good credit. pay your credit card bills on time pay off more than the minimum payment amount on your balance make your car and mortgage payments on time

3. Explain what the main risks of investing in the stock market are. Buying stock is expensive Timing is everything Main risk: loss of funds

4. What are the 4 c’s of credit? Character Capacity Collateral Capital

5. Explain the concept of credit. Credit allows someone to… purchase a product now AND pay for it later

6. Explain what a checking account is and what it allows people to do with their money Checking account allows someone to… store their earnings spend money in several different ways

7. What are characteristics of companies that make buying their stock a good investment? They have good leadership They are well-known They consistently make a profit

8. What 3 attributes of health insurance have the greatest effect on the premium? the dollar amount of the deductible the selection of doctors available the types of procedures covered

9. Define secured loan. A loan that offers an asset as collateral to ensure repayment of the loan

10. Define deductible. The amount of money that your insurance company will start paying for your healthcare expense Example: If you have a deductible that is $500 and you had a medical procedure that cost $800, you would pay $500 and your insurance company would pay the remaining $300.

11. Explain what the work-study program is. A type of financial aid program a college student works a job whose wage is determined by their financial need