Page 244 - Keys To Community College Success

get $mart

TEST YOUR FINANCIAL LITERACY

As with any academic area of study, knowledge of basic terms is a necessary foundation on which to build understanding.
Test your knowledge of some financial literacy terminology with this matching exercise.

1. ____ finance charge A. A number assigned to you based on your credit activity—higher numbers are better.

2. ____ net worth B. Using more money than you have available in a bank account.
3. ____ IRA C. Your total financial assets—cash, savings, property—minus your debt.
4. ____ debit card D. A percentage charged annually on the amount of a loan or credit card debt.
5. ____ overdraft E. A first payment on a large purchase that you cannot cover all at once.
6. ____ credit score F. When someone acquires and uses your personal information without your consent.

7. ____ interest G. When you use it, the purchase amount is subtracted from your bank account.
8. ____ APR H. A percentage that you earn on savings or pay on borrowed money or credit.
9. ____ down payment I. What it costs you to use credit; can be a percentage of what you owe, or a flat fee.
10. ____ identity theft J. An account designed to help you save money for retirement.

HOW CAN YOU MASTER DIFFERENT
types of test questions?

Every type of test question has a different way of finding out how much you know.
The two main forms of questions are:
■ Objective questions. These generally have you choose or write a short answer,
often selecting from a limited number of choices. They can include multiple-choice,
fill-in-the-blank, matching, and true-or-false questions.
■ Subjective questions. These demand the same information recall as objective ques-
tions, but they also require you to plan, organize, draft, and refine a response. All
essay questions are subjective.
As you review the sample questions in the following section, look also at the Multiple
Intelligence Strategies for Test Taking on page 207. Harness the strategies that fit your
learning strengths to prepare for exams. Note that some suggestions are repeated in the
following sections, in order to reinforce the importance of these suggestions and their
application to different types of test questions.

Multiple-Choice Questions
Multiple-choice questions are the most popular type of question on standardized tests.
The following analytical and practical strategies will help you answer them:
■ Read the directions carefully and try to think of the answer before looking at the
choices. Then read the choices and make your selection.
■ Underline key words and phrases. If the question is complicated, try to break it
down into small sections that are easy to understand.
206