Lesson 8—Summative Assessment
1. Select each item that is a type of bank account.
b. Basic checking
c. Advanced checking
d. Interest-bearing checking
e. Money market deposit account
f. Certificate of deposit
g. Investment account
2. Why is it important to keep a budget? Select all that apply.
a. To keep your spending under control
b. To keep costs down
c. So you know how much extra you can spend each month to reach $0
d. To build savings
e. To become more financially independent
3. What is the greatest obstacle regarding budgeting, according to Ally in the video “Get Wise About Budgets”?
a. Sticking to it
b. Setting it up
c. Organizing all of your expenses
d. Getting other people to agree with you
4. What is the equation for savings?
a. Bonuses + income + expenses = savings
b. Income – expenses = savings
c. Tickets + expenses = savings
d. Income + expenses = savings
5. What is the credit score range?
6. What is considered an excellent credit score?
7. What area makes up the largest portion of your credit score?
a. Payment history
b. New credit
c. Types of credit
d. Length of credit history
e. Amount owed
8. True or False: Buying things on credit before 1917 was extremely rare, and in some cases, illegal.
9. What was the biggest turning point in relaxing credit laws?
a. Big ticket items, like houses and cars
b. Great Depression
c. Banks going to court
d. Economic improvement
10. According to Financial Wellness by RISE, credit is good. Why? Select all that apply.
a. It’s easier to get the things you need
b. Helps you save
c. Creates a credit history, which helps determine your reliability for paying off debt
11. In the Dave Ramsey Show video, the 22 year old girl, Lindsey, says her parents say she needs a credit card. What is Dave Ramsey’s advice?
a. Get a credit card and build up your FICO score
b. Just stay in your parent’s basement
c. Don’t get a credit card
d. Get one so you can get in debt and pay it off
12. How do banks make most of their money? Select all that apply.
a. Interest rates on loans
b. Overdraft fees
Teachers: Go to this link to request the answer key, if needed: https://docs.google.com/document/d/1tKTs95qhxnb9k8f5NDXmQ-Nb3J7XkRGNGR4VrwHY-Yg/edit