Dollars And Sense Book Quiz: Trivia!

Paying off your credit card in full every month is a good way to build good credit because it shows that you are responsible with your finances and can manage debt effectively. When you consistently pay off your card, it demonstrates to lenders that you are reliable and trustworthy, which can lead to a higher credit score. This responsible behavior can also increase your credit limit over time, giving you more purchasing power. On the other hand, rarely using your credit card or using a debit card instead may not have the same positive impact on your credit history. Informing your bank that you are a student and need good credit to take loans may not necessarily help in building credit, as it is your credit card payment history that matters the most.

Impulse buying refers to the act of making a purchase without careful consideration or thought. In this scenario, Beatrice sees the dress and buys it without hesitation or thinking about the cost or necessity. This impulsive behavior is characteristic of impulse buying.

Social security tax is a tax that is deducted from the income of individuals to fund the social security program. The program provides benefits for retired workers and their dependents, including retirement income, disability benefits, and survivor benefits. The tax contributions are used to fund these benefits and ensure financial security for retired individuals and their families.

A budget is an itemized summary of estimated or intended expenditures for a given period, along with proposals for financing them. It helps individuals or organizations plan and allocate their financial resources effectively. A financial log is a record of financial transactions, not necessarily including proposals for financing. Career and spending summary are not relevant to the definition of a budget.

A debit card is a type of card issued by a bank that is directly linked to a person's checking account. This means that when a purchase is made using a debit card, the person must have sufficient funds in their account to cover the cost of the purchase. Unlike a credit card, which allows the person to borrow money and pay it back later, a debit card only allows for spending what is already available in the connected checking account. Therefore, a debit card requires the user to have the necessary funds in their account at the time of the purchase.

Bad credit can have a significant impact on various aspects of one's adult life. Firstly, it can affect job prospects as employers often consider credit history during the hiring process. Even if an individual has excellent qualifications, they may be overlooked due to their poor credit. Secondly, bad credit can result in being denied insurance coverage as insurers may perceive individuals with bad credit as high-risk customers. Lastly, bad credit can lead to the requirement of paying a substantial deposit before renting an apartment. This is because landlords may view individuals with bad credit as potential financial risks. Therefore, all of the given choices are true in terms of how bad credit can affect one's adult life.

The correct answer is "No, because money will be taken out for taxes." When you earn income, taxes are typically deducted from your paycheck. This means that a portion of your earnings will be withheld to cover taxes owed to the government. Therefore, the actual amount you receive will be less than the total amount you earned.

When you subtract your liabilities from your assets, you are left with your net worth. Net worth represents the value of your assets after deducting your debts or liabilities. It is a measure of your financial position and indicates how much you would have if you were to sell all your assets and pay off all your debts.

In order to take a loan from a pawnshop, collateral must be given. Collateral refers to an item of value that is provided to the pawnshop as security for the loan. If the borrower is unable to repay the loan, the pawnshop can sell the collateral to recover the amount loaned. This ensures that the pawnshop has a guarantee of repayment, making collateral a necessary requirement for obtaining a loan from a pawnshop.

When you sell all of your assets to pay back your creditors, you are going through Chapter 7 bankruptcy, which is known as liquidation. In Chapter 7 bankruptcy, a trustee is appointed to sell the debtor's non-exempt assets and distribute the proceeds to the creditors. This type of bankruptcy allows individuals or businesses to obtain a fresh start by eliminating most of their debts.

Goals are good to have because they give individuals a sense of direction and purpose. By having goals, individuals have something to work towards and can focus their efforts on achieving those goals. This provides motivation and a sense of accomplishment when the goals are achieved. Goals also help individuals prioritize their actions and make decisions that align with their desired outcomes. Overall, having goals helps individuals stay focused, motivated, and increase their chances of success.

A certificate of deposit (CD) is a bank investment for your savings where you earn interest over a duration of a set period of time. It is a fixed-term deposit that typically offers a higher interest rate compared to regular savings accounts. The money is locked in for the duration of the CD, which can range from a few months to several years. At the end of the term, you can withdraw the initial deposit plus the accumulated interest. It is a low-risk investment option for individuals looking to earn a guaranteed return on their savings.

A need is something that is essential for survival. It is something that is necessary and cannot be done without. In this context, a need is something that is required to survive. A job, a cell phone, and wanting something are not necessary for survival, so they are not the correct answers.

The FCBA stands for the Federal Credit Billing Act. This act is a federal law that provides consumer protections for credit card users. It outlines the procedures for resolving billing errors and unauthorized charges on credit card statements. The FCBA also establishes guidelines for disputing charges and sets time limits for creditors to respond to consumer complaints. Overall, the Federal Credit Billing Act aims to ensure fair and accurate billing practices in the credit card industry.

Angie has a frugal relationship with money because she carefully manages her earnings. She saves 50% of her paycheck, sets aside 20% for food, and only converts the remaining amount to cash. She exercises self-control by not using the cash unless she has a good reason to buy something. This shows that she is mindful of her spending and prioritizes saving for the future.

Janay is a victim of phishing because she received an email that appeared to be from her favorite clothing store, but it was actually a fraudulent email. The email enticed her to enter her social security number in order to receive a large discount. However, when she clicked on the link provided in the email, she was taken to a fake website where her personal information was stolen. This is a classic example of phishing, where cybercriminals deceive individuals into providing sensitive information by pretending to be a trustworthy entity.

A daily latte at Starbucks is an example of a liability because it represents an ongoing expense that needs to be paid regularly. Liabilities are obligations or debts that an individual or company owes to others. In this case, purchasing a daily latte at Starbucks creates a financial obligation to pay for the coffee each day, making it a liability.