BPA; Financial Literacy questions with
verified answers graded A+
What is a common advantage of using credit? - correct answer ✔✔ Ability to obtain needed
items now
What is a bank card? - correct answer ✔✔ A credit card issued through a credit union
What is a grace period? - correct answer ✔✔ Time for paying an account without interest
charge
What does comparing the APR among several credit cards allow? - correct answer ✔✔ ability to
obtain the lowest interest rate
What is incorrect when endorsing a check? - correct answer ✔✔ Sign your name in pencil so
that if you change your mind about cashing or depositing the check, you can erase your
signature.
What is a credit union? - correct answer ✔✔ A nonprofit financial institution that is owned by
its member and organized for their benefit that offers a range of services which may include
checking accounts, loans, and credit cards.
What is direct deposit? - correct answer ✔✔ An automatic deposit of net pay from an employer
to an employee's designated bank account instead of issuing a paper check.
What is compounding? - correct answer ✔✔ The process in which interest is earned on the
principal and on any previously earned interest.
verified answers graded A+
What is a common advantage of using credit? - correct answer ✔✔ Ability to obtain needed
items now
What is a bank card? - correct answer ✔✔ A credit card issued through a credit union
What is a grace period? - correct answer ✔✔ Time for paying an account without interest
charge
What does comparing the APR among several credit cards allow? - correct answer ✔✔ ability to
obtain the lowest interest rate
What is incorrect when endorsing a check? - correct answer ✔✔ Sign your name in pencil so
that if you change your mind about cashing or depositing the check, you can erase your
signature.
What is a credit union? - correct answer ✔✔ A nonprofit financial institution that is owned by
its member and organized for their benefit that offers a range of services which may include
checking accounts, loans, and credit cards.
What is direct deposit? - correct answer ✔✔ An automatic deposit of net pay from an employer
to an employee's designated bank account instead of issuing a paper check.
What is compounding? - correct answer ✔✔ The process in which interest is earned on the
principal and on any previously earned interest.
