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Financial Management > Final Exam > Flashcards

Final Exam Flashcards

0
Q

Ch. 1
True or False:
Pre-authorized checking helps to build discipline in savings.

A

True

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1
Q

Ch. 1
True or False:
The first thing you should save for is your retirement fund.

A

False

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2
Q

Ch. 1
True or False:
Your first baby step is to pay off all of your debt.

A

False

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3
Q

Ch. 1
True or False:
A money market is the best place for your emergency fund.

A

True

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4
Q

Ch. 1
True or False:
A sinking fund is what really makes money grow over time.

A

False

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5
Q

Ch. 1
True or False:
Dave’s 80/20 rule says that personal finance is 80% knowledge and 20% behavior.

A

False

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6
Q

Ch. 1
True or False:
Rate of return matters when it comes it compound interest.

A

True

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7
Q

Ch. 1
True or False:
If we used a race analogy to describe building wealth, it would be most like a sprint.

A

False

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8
Q

Ch. 1
True or False:
You should invest 10% of your household income into Roth IRAs and pre-tax retirement plans.

A

False

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9
Q

Ch. 1
True or False:
Murphy’s Law is more likely to strike if you are prepared for the unexpected events that occur throughout life.

A

False

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10
Q

Ch. 1

Place your emergency fund in this type of account: _______

A

Money Market

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11
Q

Ch. 1

Baby Step 1 is _______.

A

$500-$1,000

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12
Q

Ch. 1

The typical American has a _______ savings rate.

A

Negative

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13
Q

Ch. 1

Saving must become a _______.

A

Priority

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14
Q

Ch. 1

The emergency fund is not a big _______.

A

Earner

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15
Q

Ch. 1

A fully funded emergency fund is _______ months of expenses.

A

3-6

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16
Q

Ch. 1

Pay yourself _______.

A

First

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17
Q

Ch. 1

Use the _______ approach instead of borrowing to purchase things.

A

Sinking fund

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18
Q

Ch. 1

The percentage by which your money grows is called the _______.

A

Rate of Return

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19
Q

Ch. 1

_______ says that whatever can go wrong will go wrong.

A

Murphy’s Law

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20
Q

Ch. 1
The saving habits of Ben and Arthur best illustrate what principle of saving?
a. Rate of return maters
b. the amount of the initial investment is the key.
c. The length of time money is invested matters.
d. Both a and c.

A

d. Both a and c.

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21
Q

Ch. 1
What is the most sensible way to buy a $4,000 car?
a. Put a down payment of $500 and use 90 days same-as-cash to pay the balance.
b. Use the sinking fund approach and save $400 a month for ten months
c. Shop around for the best interest rate before taking out a $4,000 loan
d. Ask your parents to co-sign a loan at your credit union.

A

b. Use the sinking fund approach and save $400 a month for ten months

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22
Q

Ch. 1
Which is the correct order of priorities for your money?
a. Give, save, pay bills
b. Pay bills, save, give
c. Save, pay bills, give
d. It is not important which order you follow as long as you do these 3 things.

A

a. Give, save, pay bills

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23
Q 
Ch. 1
Which is not a key to saving money?
a. Your income 
b. Making savings a habit and a priority 
c. Discipline 
d. Focus
A

a. Your income

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24
Q 
Ch. 1
Which of the following is now reason to save?
a. Emergency fund
b. Purchases 
c. Pay off debt
d. Wealth building
A

c. Pay off debt

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25
Q

Ch. 1
How much money should Lisa and Joe have in their emergency fund if they have a $3,000 credit card bill and a mortgage?
a. 3-6 months of expenses
b. 10% of their credit card balance
c. $1,000
d. No emergency fund until the credit card is paid off.

A

c. $1,000

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26
Q

Ch. 1
Even though a savings account is fine when you are just beginning to save, why is a money market a better place to keep your emergency fund?
a. A saving account is a bit too easy to access
b. Typically, money markets average a higher interest rate than a savings account.
c. A money market is accessible and generally has check writing privileges if needed.
d. All of the above

A

d. All of the above

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27
Q

Ch. 1
A good way to build discipline and get into the habit of saving is:
a. Pre-authorized checking
b. Avoid daily expenses such as coffee
c. Always pack a lunch and save the cost of eating out
d. Have your parents remind you

A

a. Pre-authorized checking

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28
Q

Ch. 1
The Baby Steps can best be described as:
a. A systematic process for getting out of a financial mess
b. A series of seven sequential steps that help you plan, save and manage money.
c. A series of steps that will work in good times and in bad times.
d. All of the above

A

a. All of the above

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29
Q 
Ch. 1
For most people, (excluding students) a fully funded emergency fund will be about:
a. $1,000
b. $3,000-$5,000
c. $5,000-$10,000
d. $10,000-$15,000
A

d. $10,000-$15,000

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30
Q 
Ch. 1
If you invest $1,000 at 12% interest, how much money will be in the account after two years, compounded annually?
a. $1,120
b. $1,240
c. $1,254.40
d. $1,300.40
A

c. $1,254.40

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31
Q 
Ch. 1
Savings is about:
a. Making more money and discipline
b. Pride and greed
c. Emotion and contentment 
d. Contentment and earning more money
A

c. Emotion and contentment

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32
Q 
Ch. 1
For which of the following should you save?
a. Wealth Building
b. Emergency Fund
c. Purchases
d. All of the above
A

D. All of the above

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33
Q

Ch. 1
Which of the following is true about the concept of saving?
a. Savings must become a priority after all bills are paid
b. You will save when you make more money.
c. You must pay yourself first
d. All of the above

A

c. You must pay yourself first

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34
Q

Ch. 1
A sinking fund approach means:
a. Saving and paying cash
b. Buying with credit, but paying it off in full before the interest comes due
c. Buying with credits, getting low interest rate, and sinking further into debt.
d. 90 days same-as-cash

A

a. Saving and paying cash

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35
Q

Ch. 1
Which statement is most true about a one time investment for 40 years?
a. The interest rate doesn’t matter as long as you leave it alone for 40 years.
b. It is foolish to only make it one time investment
c. The annual interest rate does matter when making a one time investment
d. All of the above

A

c. The annual interest rate does matter when making a one time investment

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36
Q

Ch. 1
Which statement is true?
a. People spend more money when they pay with cash
b. When you pay with cash, you can almost always negotiate a better deal
c. When you pay with cash it is hard to negotiate a deal because you didn’t use their credit
d. Using a credit card is safer than carrying cash around

A

b. When you pay with cash, you can almost always negotiate a better deal

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37
Q

Ch. 1
What is the next step after you have a fully funded emergency fund?
a. Pay off the rest of your mortgage
b. Finish paying off the last credit card
c. Invest 15% of your income into Roth IRAs and pretax retirement plans
d. Work on both a and b at the same time

A

c. Invest 15% of your income into Roth IRAs and pretax retirement plans

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38
Q 
Ch. 1
Using the sinking fund approach how much do you have to save to buy a $5000 car next year?
a. $275 a month into savings
b. $300 a month into savings
c. $400 a month into savings
d. $416.66 a month into savings
A

d. $416.66 a month into savings

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39
Q

Ch. 1
How much money should you have in your emergency fund if you are working on baby step 2 (pay off all debt)?
a. 15% of your household income
b. 3-6 months of expenses
c. $500 or $1000, depending on your current income
d. You should not have an emergency fund until all debt is paid

A

c. $500 or $1000, depending on your current income

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40
Q

Ch. 2
True or false:
Diversification to spread around.

A

True

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41
Q

Ch 2.
True or false:
With all investments as the risk goes up the return goes down

A

False

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42
Q

Ch 2.
True or False:
Liquidity is the availability of your money

A

True

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43
Q

Ch 2.
True or False:
100% of the ten-year periods in the history of the stock market made money

A

True

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44
Q

Ch 2.
True or False:
The difference between saving and investing is the amount of interest you earn on your money

A

False

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45
Q

Ch 2.
True or False:
The average mutual fund includes 90 to 200 companies

A

True

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46
Q

Ch 2.
True or False:
Real estate is the most liquid of all investments

A

False

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47
Q

Ch 2.
True or False:
A share is a piece of ownership and an annuity

A

False

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48
Q

Ch 2.
True or False:
A commodity is a savings account with a certificate

A

False

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49
Q

Ch 2.
True or False:
Profits that a company distributes to its shareholders are called dividends

A

True

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50
Q

Ch 2.

Never invest using ______ money

A

Borrowed

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51
Q

Ch 2.

Oil and Gold are examples of _____.

A

Commodities

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52
Q

Ch 2.

When investing you should always check the ______ track record.

A

5-10 year

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53
Q

Ch 2.

You should you saving for ______ term investments

A

Aggressive

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54
Q

Ch 2.

The availability of your money is called _____.

A

Liquidity

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55
Q

Ch 2.

Stocks from overseas companies are called _____ growth stock mutual funds

A

International

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56
Q

Ch 2.

The ______ says that with investments as the risk goes up so should the return

A

Risk return ratio

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57
Q

Ch 2.

A _____ is a debt instrument where a company owes you money

A

Bond

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58
Q

Ch 2.

_____ are savings accounts with insurance companies

A

Annuities

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59
Q

Ch 2.

In _____, investors pool their money

A

Mutual funds

60
Q

Ch 2.
Which is not true about investments:
a. Never invest using borrowed money
b. Diversification will help lower the risk
c. Always invest only for tax savings purposes
d. Never invest only for tax savings purposes

A

c. Always invest only for tax savings purposes

61
Q

Ch 2.
The risk return ratio says:
a. When the rest goes up the return generally will go up
b. When the rest goes up the return generally will go down
c. When the risk goes up the return generally will go up
d. None of the above

A

c. When the risk goes up the return generally will go up

62
Q

Ch 2.
What is true about investing in single stocks?
a. There is a low degree of risk
b. There is a high degree of risk
c. The risk is the same whether you invest in mutual funds or stocks
d. If the stock is from your employer the risk is lower

A

b. There is a high degree of risk

63
Q 
Ch 2.
Which is not a good investment?
a. Gold
b. Committees
c. Vatical's
d. All of the above
A

d. All of the above

64
Q 
Ch 2.
A collection of money from different investors which is used to purchase stocks bonds or other investments managed by fund manager:
a. Company stock
b. Annuities
c. Mutual funds
d. Bonds
A

c. Mutual funds

65
Q

Ch 2.
The KISS role of investing teaches:
a. The more sophisticated the investment the better
b. Keep things simple and never buy something you don’t understand
c. It is normal to have investments you don’t understand as long as you have a broker
d. None of the above

A

b. Keep things simple and never buy something you don’t understand

66
Q 
Ch 2.
Which is a type of annuity?
a. Variable
b. Stable
c. Fixed
d. Both a and c
A

d. Both a and c

67
Q

Ch 2.
The most aggressive mutual funds tend to be from:
a. Companies that are a little younger and growing
b. companies that are overseas
c. Companies that are older and well-established
d. All of the above

A

a. Companies that are a little younger and growing

68
Q 
Ch 2.
Your piece of ownership in a company is called:
a. Portion
b. Dividend
c. Profit
d. Share of stock
A

d. Share of stock

69
Q 
Ch 2.
Which of the following funds would be most risky?
a. International
b. Growth
c. Aggressive growth
d. Large-cap
A

c. Aggressive growth

70
Q

Ch 2.
What is the best option to do if you begin losing money in your mutual fund?
a. Call your broker and switch your funds
b. Pull everything out and open a certificate of deposit at the bank
c. Leave it alone but stop investing money in the fund
d. Leave it alone and continue to invest money in the fund

A

….

71
Q 
Ch 2.
Which one is not a risky investment?
a. Commodities
b. Annuities
c. Viatical's
d. Futures
A

b. Annuities

72
Q

Ch 2.
Which statement is true about liquidity?
a. The more liquid investment is the less return
b. The more liquid an investment is the more return
c. The less liquid an investment is the less return
d. Both a and c

A

a. The more liquid investment is the less return

73
Q

Ch. 3
True or False:
Pretax means the government allows you to invest money after taxes are taken out

A

False

74
Q

Ch. 3
True or False:
ESAs are a good way to save for college

A

True

75
Q

Ch. 3
True or False:
The Roth IRA is an after-tax investment that grows tax-free

A

True

76
Q

Ch. 3
True or False:
Once you have a fully funded emergency fund, put 10% of your income into retirement plans

A

False

77
Q

Ch. 3
True or False:
The contribution amount for a Roth IRA into 2008 is $5000

A

True

78
Q

Ch. 3
True or False:
457 plans are designed for employees of non-profit organizations such as hospitals and school

A

False

79
Q

Ch. 3
True or False:
If your money is in a pretax retirement plan you will pay taxes on it when you cash out

A

True

80
Q

Ch. 3
True or False:
Never roll over your 401(k) when you leave a company

A

False

81
Q

Ch. 3
True or False:
You should save for college using saving bonds

A

False

82
Q

Ch. 3
True or False:
Pension plans only work if you participate in them. If you put nothing in you will get nothing out

A

False

83
Q

Ch. 3

A retirement plan for self-employed people.

A

SEPP

84
Q

Ch. 3

A deferred compensation plan

A

Pension

85
Q

Ch. 3

Typical retirement plan found in most companies

A

401(k)

86
Q

Ch. 3

Retirement plan found a nonprofit groups (schools, hospitals)

A

403(b)

87
Q

Ch. 3

Save for college by first using this type of account

A

Educational savings account

88
Q

Ch. 3

Used after you max out the ESA

A

457

89
Q

Ch. 3

Movement of tax-deferred retirement money from one plan to another

A

Rollover

90
Q

Ch. 3

Invest 15% of income for retirement

A

Baby step 4

91
Q

Ch. 3

Manager of a child you UTMA account until he or she reaches age 21

A

Custodian

92
Q

Ch. 3

College funding

A

Baby step 5

93
Q 
Ch. 3
The company Jason works for matches his 401(k) contribution up to 5%. Jason takes advantage of this and contributes $200 per month. At the end of one year how much money will be in his account?
a. $1200
b. $2400
c. $4800
d. $5000
A

c. $4800

94
Q

Ch. 3
If your company does not provide any type of 401(k) match what is the best investment option?
a. Contribute nothing into your 401(k) if there’s no match
b. Invest the maximum amount allowed in both Roth IRA and then go back and fund the 401(k) to complete 50% of your income
c. Fully fund the 401(k) up to 15% of your income
d. Find another job with a company that offers a retirement plan

A

b. Invest the maximum amount allowed in both Roth IRA and then go back and fund the 401(k) to complete 50% of your income

95
Q

Ch. 3
What definition best explains IRA?
a. A type of investment at a bank
b. A type of investment of the banker investment firm that has good tax benefits
c. The tax treatment on virtually any type of investment
d. Investment that uses pretax dollars

A

c. The tax treatment on virtually any type of investment

96
Q 
Ch. 3
Which is an advantage of a Roth IRA?
a.  Offers more choices
b. Grows tax-free
c. Higher bracket at retirement
d. All of the above
A

d. All of the above

97
Q

Ch. 3
The primary difference between the Roth IRA and a traditional IRA is:
a. The IRA allows a contribution amount of $5000 for non-income producing
b. The Roth IRA grows tax-free; the traditional IRA doesn’t
c. Contributions to your Roth are pretax; contributions to a traditional IRA are after-tax
d. A traditional IRA grows tax-free; the Roth IRA doesn’t

A

b. The Roth IRA grows tax-free; the traditional IRA doesn’t

98
Q

Ch. 3
Under what condition are you not able to make a tax-free withdrawal from your Roth IRA?
a. Over 59 1/2 years old
b. First time home purchase up to $10,000
c. Major career change and temporary drop of income
d. Death or disability

A

c. Major career change and temporary drop of income

99
Q

Ch. 3
What is the best option for your retirement plan when you leave a company?
a. Have the money sent to you and deposit into a new IRA within 60 days
b. Do a direct transfer into an IRA
c. Leave the plan where it is so I can continue to accrure interest
d. Cash out the planet investing good mutual funds

A

b. Do a direct transfer into an IRA

100
Q

Ch. 3
If you borrow against your retirement plan under which conditions must you pay it back?
a. If you leave the company voluntarily
b. If you are forced to leave the company
c. If you die
d. All of the above

A

d. All of the above

101
Q

Ch. 3
If you have $3000 invested into a Roth IRA which is true about your contribution?
a. You have already paid taxes on the money so it will grow tax-free
b. You will pay taxes only on the growth of $3000
c. You maxed out your contribution
d. Both a and b

A

a. You have already paid taxes on the money so it will grow tax-free

102
Q 
Ch. 3
Which of the following are good ideas to save for college?
a. Savings bonds
b. ESA
c. Prepaid college tuition
d. Life Insurance
A

b. ESA

103
Q 
Ch. 3
Using the rule of 72 how long it will take your money to double at 12% interest
a.  6 years
b. 7.2 years
c. 8 years
d. 9 years
A

a. 6 years

104
Q

Ch. 3
Caleb’s company offers a 5% match on the 401(k) if he makes $40,000 annually, what should his investment plan look like?
a. $6000 total investment :$2000 in 401(k) and $4000 and a Roth IRA
b. $6000 total investment: $6000 in 401(k)
c. $6000 total investment: $6000 and a Roth IRA
d. $4000 total investment $2000 in a 401(k) and $2000 in a Roth IRA

A

a. $6000 total investment :$2000 in 401(k) and $4000 and a Roth IRA

105
Q

Ch. 3
Teresa and Kyle want to open a Roth IRA for their 10-year-old son. what is the current contribution allowed?
a. $5000 starting in 2008
b. $2500: a child under 18 can do up to one half the maximum contribution limit
c. $0: not eligible if you do not have an earned income
d. $2000 per year starting in 2008

A

c. $0: not eligible if you do not have an earned income

106
Q

Ch. 3
When seeking a financial counselor to help you with your investments always go with:
a. A close family member or friend because you will be helping each other out
b. Financial counselor with the heart of a teacher who explained everything to you
c. A financial counselor who is sophisticated and uses all the right vocabulary
d. A financial counselor who has at least five years experience

A

b. Financial counselor with the heart of a teacher who explained everything to you

107
Q 
Ch. 3
What does baby step 5 say about saving for your children's college?
a. Use it certificate of deposit
b. Use a pre-pay college tuition
c. Use tax favored plans
d. Use entrance or saving bonds.
A

c. Use tax favored plans

108
Q

Ch. 4
True or False:
Living without debt in today’s society requires a paradigm shift

A

True

109
Q

True or False:

Henry Ford and JCPenney were pioneers of the use of credit

A

False

110
Q

True or False:

You need a credit card in order to rent cars and check into hotels

A

False

111
Q

True or False:

Loaning money to a friend or relative is never a good idea

A

True

112
Q

True or False:

The debt snowball begins with your highest interest rate debt debt

A

False

113
Q

True or False:

If you absolutely have to loan money to help a friend or relative, cosigning is the way to go

A

False

114
Q

True or False:

The typical millionaire drives a reliable used car

A

True

115
Q

True or False:
Cash advance and title pine businesses charge roughly the same percentage rates and fees on loans as a credit card company

A

False

116
Q

True or False:

There is nothing wrong with using a credit card if you pay your balance in full every month

A

False

117
Q

True or False:

Spending cash is less painful than using a debit card

A

False

118
Q

A widely held but mistaken belief

A

Myth

119
Q

Mortgage ones where the interest rate is adjusted periodically

A

ARM

120
Q

First charge card in the United States

A

Diners club

121
Q

A tax on the poor and people who can’t do math

A

Lottery

122
Q

The debt snowball

A

Baby step 2

123
Q

Most expensive way to finance a new car

A

Leasing

124
Q

Using equity in a home as collateral when borrowing money

A

Home equity loan

125
Q

A product aggressively marketed to consumers

A

Debt

126
Q

A drop in the value

A

Depreciation

127
Q

Which following is true about using credit cards:

a. It is the same thing as using cash
b. When using credit one spends less
c. When using credit one spends more
d. Using credit neurotically registers as pain

A

c. When using credit one spends more

128
Q

What is the best way to buy a car?

a. Leasing
b. Purchase new at the end of the year
c. 0% financing on new or used
d. Purchase used (two years or older)

A

d. Purchase used (two years or older)

129
Q

How much more do you spend on purchases when you use credit vs. cash?

a. 3-5%
b. 12-18%
c. 10 - 20%
d. No different than spending

A

b. 12-18%

130
Q

Payday lending in cash advance companies are aggressively targeting which group of people?

a. Teens
b. Elderly
c. College Graduates
d. Military

A

d. Military

131
Q

It’s 80% of millionaires are first-generation rich than one can conclude:

a. They started with nothing made smart decisions and became millionaires
b. They fell for the Mets that society lives by
c. The other 20% are not millionaires
d. Both a and b
d. All of the above

A

a. They started with nothing made smart decisions and became millionaires

132
Q

On average, payday lending cash advance and title pinelands cost the consumer:

a. 400% or more annually
b. Nothing but the fee if you pay back the loan within 30 days
c. Three times the APR of an average credit card
d. 100 to 250% annually

A

a. 400% or more annually

133
Q

What is the problem with using credit cards if you pay your balance off each month?

a. This is the only responsible use of credit
b. You are spending an average of 12 to 18% more when you use a credit card
c. You are more apt to buy on impulsive rather than thinking about a purchase
d. Both b and c

A

d. Both b and c

134
Q

Which statement is not true about debt consultation?

a. You only have one payment to deal with
b. You end up saving money because you were getting a lower interest rate
c. Smaller payments equal more time in debt
d. Your lower interest loans get rolled into the deal so you end up with minimal savings

A

b. You end up saving money because you were getting a lower interest rate

135
Q

Which is true about the marketing of the credit cards to teenagers?

a. Teens are the number one target of American credit card companies
b. Brand loyalty to your first card is incredible so credit card companies work hard to become the first issuer
c. Colleges are losing more students to credit card debt problem than to academic failure
d. All of the above

A

d. All of the above

136
Q

Which type of mortgage is the best to take out particularly if you’re going to be moving in 5 to 7 years?

a. Fixed 30-year
b. Adjustable Rate Mortgage
c. Fixed 15 year
d. Balloon mortgage

A

c. Fixed 15 year

137
Q

Which of the following is a step out of debt?

a. Quit borrowing money
b. Sell something
c. Using the debt snowball
d. All of the above

A

d. All of the above

138
Q

The key to building wealth is:

a. Staying debt-free
b. A good education and income
c. Fixed rate 15 year mortgages
d. Driving reliable used cars

A

a. Staying debt free

139
Q

Which is not part of the debt snowball?

a. Pay minimum on all of that except the smallest one
b. Put every dollar you can on the smallest debt
c. List your debt from highest interest rate to lowest interest rate
d. The minimum payment for my paid off debt goes towards the new payment amount the next debt

A

b. Put every dollar you can on the smallest debt

140
Q

Which is true about making purchases of credit cards?

a. You spent 12 to 18% less when using a credit card
b. You spent 12 to 18% more when using a credit card
c. You are more likely to experience the “pain” when purchasing with a credit card
d. None of the above

A

b. You spent 12 to 18% more when using a credit card

141
Q

Which statement is not true about depreciation?

a. Depreciation and interest accounts for more than half the annual cost of owning a car
b. Depreciation doesn’t matter if you pay for something using cash
c. I new car loses 40% of its value in the first four years
d. Went by and slightly used items you minimize depreciation

A

b. Depreciation doesn’t matter if you pay for something using cash

142
Q

Why do people think that home equity loans are good?

a. Because of the tax refund
b. They serve as a substitute for an emergency fund
c. It is a good way to consolidate debt
d. All of the above

A

d. All of the above

143
Q

Kevin has the following debts: Home equity loan, $24,000; Visa, $1200; student loan, $5000; car, $12,000. How should he prioritizes his debt snowball?

a. Home equity, Visa, student loan, car
b. Visa, car, student loan, home-equity
c. Visa, student loan, car, home-equity
d. Need the interest rate of each loan to do the debt snowball accurately

A

c. Visa, student loan, car, home-equity

144
Q

What is not in regards to making minimum payments on the credit card?

a. Minimum payments leave you in debt longer
b. A minimum payment is usually a much smaller percentage of the balance than the average interest rate
c. As long as you can make minimum payments the balance you owe doesn’t matter
d. Minimum payments are designed to keep you in debt, therefore making credit card companies more money

A

c. As long as you can make minimum payments the balance you owe doesn’t matter

145
Q

Why is gazelle intensity so important getting out of the cycle of debt?

a. So you don’t get stuck and it
b. To help build momentum
c. Both a and b
d. It isn’t that important

A

c. Both a and b

146
Q

And which type of loan what do you use your house collateral?

a. Adjustable rate
b. Home-equity
c. Balloon mortgage
d. 15 year fixed

A

b. Home equity

147
Q

The main difference between debit and credit card is:

a. A debit card requires that you have the cash available in the account; a credit card doesn’t
b. Credit card had the visa or MasterCard logo; a debit card doesn’t
c. A debit card does not offer the same protections as a credit card
d. A credit card requires that you have the cash available on the account and debit card doesn’t

A

a. A debit card requires that you have the cash available in the account; a credit card doesn’t

148
Q

How is a debit card like a credit card?

a. They both can have a Visa or MasterCard logo.
b. A debit card can have a minimum monthly finance charge.
c. A debit card can be swiped and require a signature like a credit card
d. Both a and c
e. All of the above

A

d. Both a and c

Financial Management (10 decks)

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