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Finance Week 3 Quiz




Question;Week 3 QuizPlease read through the following questions and based on your week 2 material, highlight or underline the correct answer. Please submit quiz no later than midnight Sunday.1) What is the main disadvantage of using only a debit card?Debit card purchases are not reported to credit reporting agencies and therefore will not help you build your credit score.Not all stores accept debit cards.You may earn better rewards with a credit card.Credit cards offer fewer protections if your card is lost or stolen.2) When selecting and using a debit card, you should avoidmonitoring your account every other dayprepay cards that allow you to load more money onto themdebit cards tied to your checking accountoverdraft protection that allows you to spend more than you have3) Which of the following is not an effective way to think about money?Live below your means but within your needs.Only purchase needs, not wants.Financial freedom requires making a lot of money.Pay yourself first.4) The smartest way to build an emergency fund is toset aside small amounts monthly through an automatic savings planopen a home equity line of credit (HELOC) that you can tap into in case of emergencytake out multiple credit cards with high credit limits that you can tap into in emergenciesgo on a strict budget and save as much as possible until you have an emergency fund5) How much money should you have in your emergency savings account?An amount that will safely cover your bills for three to six monthsAn amount equal to eight months of your livingAn amount between $2,500 and $5,000 to cover sudden, unexpected expensesThree months of your wages6) The best place for your emergency savings fund isin a liquid account at a bank or credit union that offers you the highest interest rate possiblein a fireproof safe within your home, you want to be able to get to your money quickly in an emergencyin your checking account or your debit-card account so you can get it right away?keep a mental note of what part of your balance is to be spent only on emergenciesin a Roth IRA?you can always withdraw your contributions without a penalty or tax 7) How do you make sure the money you deposit at a bank or credit union is 100% safe?that you are guaranteed to get every penny back no matter what?Keep the money in a checking or savings account, not a money-market fund.Keep cash in a safe-deposit box at a bank that you have access to seven days a week.Just make sure your balance is never more than $50,000 at a single bank or credit union, because that is the limit that financial institutions can guarantee.Confirm that a bank is a member of the Federal Deposit Insurance Corp. (FDIC) or a credit union is a member of the National Credit Union Share Insurance Fund (NCUSIF), and never have more in your account than the maximum insured amount.8) What is the maximum dollar amount the Federal Deposit Insurance Corp. (FDIC) ensures in a single account?$150,000$200,000$250,000$500,0009) If the money you have coming in each month (your take-home pay) is less than the money going out each month to pay the bills, you shouldmake up the difference by using a credit card with a very low interest ratestop paying your credit card in full, paying just the minimum due gives you more money each monthlook through your spending for the single biggest expense you can eliminate completely to make your income equal what you spendfind ways to trim spending from multiple spending categories till you have made up the shortfall10) To intelligently reduce your spending over the long termmark all the needs in your spending categories and get rid of them completelynever carry cash or credit cards on your personconsider scaling back on the frequency of certain expenses, such as how many times a month you eat out or go to the movies limit your trips to stores or malls to just once a month


Paper#48881 | Written in 18-Jul-2015

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