Posted by Todd Zywicki:
Econ4u.org:
http://volokh.com/archives/archive_2009_03_08-2009_03_14.shtml#1236955576
While riding the Metro the other day I saw an ad for the website
econ4u.org, which provides information on personal financial literacy.
The form of the ad is what caught my eye--it had a quiz and this was
the question:
If faced with an unexpected cash need, which of these options will
typically cost the most?
Bounce a check Get a short-term payday loan Initiate a wire
transfer Pay credit card late fee
Please select an answer.
Those who take the quiz the answer correct 27% of the time. Regular
readers here probably know the answer:
([1]show)
Bounce a check
([2]hide)
.
Here's the explanation:
([3]show)
The most expensive of these options is usually a bounced check. While
a typical short-term payday loan or Western Union wire transfer for
$100 costs around $15, and a credit card late fee is generally around
$29, the fees and penalties for a bounced check often exceed $50.
([4]hide)
([5]hide)
The site is sponsored by The Center for Economic and Entrepreneurial
Literacy, which I don't know anything about. But the site looks like
it has some useful personal finance information.
References
1. file://localhost/var/www/powerblogs/volokh/posts/1236955576.html
2. file://localhost/var/www/powerblogs/volokh/posts/1236955576.html
3. file://localhost/var/www/powerblogs/volokh/posts/1236955576.html
4. file://localhost/var/www/powerblogs/volokh/posts/1236955576.html
5. file://localhost/var/www/powerblogs/volokh/posts/1236955576.html
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