Question

1. which type of financial institution typically charges the highest interest rates for loans? a. credit unions b. commercial banks c. savings and loans d. payday loan companies 38. disposable income is the money that is: a. deducted from your paycheck. b. budgeted for variable expenses. c. spent or saved after deductions. d. saved and invested each month. 39. a positive net worth means that: a. income is less than saving. b. assets are less than liabilities. c. income is greater than saving. d. assets are greater than liabilities. 40. “pay yourself first” means that: a. all bills get paid before any saving. b. money is set aside for savings before spending. c. fixed expenses are paid before flexible expenses. d. credit cards pay for what you don’t have as income. 41. using a debit card to purchase a good is most similar to using a: a. loan. b. check. c. credit card. d. money market account.

Explanation:

• For question 37, payday loan companies are known for high - interest loans due to short - term and high - risk nature.
• For question 38, disposable income is what remains after deductions for spending or saving.
• For question 39, net worth is calculated as assets minus liabilities, so positive net worth means assets > liabilities.
• For question 40, "Pay Yourself First" emphasizes setting aside savings before other spending.
• For question 41, using a debit card is similar to using a check as it directly accesses funds in an account.

Answer:

1. D. payday loan companies
2. C. spent or saved after deductions
3. D. assets are greater than liabilities
4. B. money is set aside for savings before spending
5. B. check