Unit 1 review personal finance and economics

Unit 1 review personal finance and economics

Multiple Choice

Which of the following is known as something you own. 

• Liabilities
• Assets
• Net worth
• Gross income

Multiple Choice

Which of the following best describes a budget?

• A financial tool for consumers with little money
• A plan for saving and spending money
• A set of restrictions on how to spend money
• A statement of your assets and liabilities

Multiple Choice

Which of the following is known as purchasing an item on a whim?

• Impulse
• Fixed
• Flexible
• Online purchase

Multiple Choice

Which of the following best summarizes step 6 of the financial planning steps?

• Have a plan B

• Invest in bonds, not stocks

• Save in a bank, not a credit union

• Save in a credit union, not a bank.

Multiple Choice

Which of the following scenarios would be an example of inflation risk?

• Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

• Mr L gets fired. (Cuz really... it's only a matter of time.)

• Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

• Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

Multiple Choice

Which of the following scenarios would be an example of income risk?

• Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

• Mr L gets fired. (Cuz really... it's only a matter of time.)

• Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

• Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

Multiple Choice

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Marissa, looking to begin shopping for a car, begins writing out what she NEEDS in her car and and she would WANT in her car."

• Determining Your Financial Situation

• Developing Your Financial Goals

• Identifying Your Options

• Evaluate Alternatives

• Create and Use a Plan of Action

Multiple Choice

STATE which of the 6 steps to financial goal planning is represented in this scenario: "George is using the SMART Goals acronym to plan out the future."

• Determining Your Financial Situation

• Developing Your Goals

• Identifying Your Options

• Evaluate Alternatives

• Create and Use an Action Plan

Multiple Choice

An arrangement to receive cash, goods, or services now and pay for them in the future.

• credit

• credit card

• credit limit

• debit card

Multiple Choice

Calculate the compound interest for this problem. $1,000 at 6% interest for 3 Years. 

• $969.39
• $1,180.00
• $1,191.02
• $1,881.60

Multiple Choice

What is the second foundation

• Save a $500 Emergency Fund
• Build Wealth and Save
• Get Out of Debt
• Pay Cash for Your Car

Multiple Choice

Which of the following is not one of the three basic reasons for saving money

• Large Purchases
• Have money available to lend to friends
• Emergency Fund
• Build Wealth

Multiple Choice

At your age, a fully funded emergency fund should be...

• $1000
• $5000
• $500
• $100

Multiple Choice

Your income level greatly affects you saving habits

• False
• True

Multiple Choice

When it comes to saving money, the amount you save is determined by how much you have left at the end of the month once all of your spending is done.

• True
• False

Multiple Choice

The persistent increase in the cost of goods and services or the persistent decline in the purchasing power of money

• Deflation
• Interest
• Inflation
• Recession

Multiple Choice

A rate which is either charged (on debt) or paid (on investment accounts) for the use of money

• Interest Rate
• Savings Rate
• Inflation Rate
• Interest Percentage

Multiple Choice

Interest paid on interest previously earned

• Simple Interest
• Frequent Interest
• Interest Account
• Compound Interest

Multiple Choice

A savings account that is set aside to be used only for emergency expenses

• Safety Fund
• Emergency Fund
• Savings Fund
• Expense Fund

Multiple Choice

Your emergency fund should be kept________

• at your parents house

• with your regular money

• in a credit card

• in separate account

Multiple Choice

When I want to buy I car I should________________

• pay cash

• borrow from my parents

• borrow from the bank

Multiple Choice

Finances is_____ head knowledge

• 80

• 50

• 20

• 30

Multiple Choice

How much money should be in an emergency fund?

• 100

• Have no clue because I wasn't listening.

• 500

• 1000

Multiple Choice

Scarcity forces people to_____________________

• Make Choices

• satisfy all their wants and needs

• Give up opportunity cost

Multiple Choice

_____________ not enough of something that people want

• Scarcity

• Opportunity Cost

• Tradeoff

Multiple Choice

______________ not having enough resources to satisfy all of the needs/wants

• Scarcity

• Opportunity Cost

• Tradeoff

Multiple Choice

_____________________ study of production, employment, prices, and policies (will unemployment rise if there is an increase in taxes)

• Macroeconomics

• Microeconomics

• Opportunity Cost

Multiple Choice

The two branches of economics are micro & macro. 

• True
• False

Multiple Choice

_____________ anything that it used to make a good or service.

• Resources
• Good
• Service

Multiple Choice

__________ Things required to live such as food, shelter, clothing, air

• Need
• Want
• Tradeoff

Multiple Choice

Government is the study of getting rich and the stock market.

• True
• False

Multiple Choice

__________study of how people (including companies/countries) make choices on buying, selling, using, and distributing goods/services.

• Economics
• Consumer Science
• Opportunity Costs

Multiple Choice

Monthly means how many times a year?

• 4 
• 12
• 52
• 365

Multiple Choice

Semi-Annually means how many times a year?

• 4

• 2

• 1

• 6

Multiple Choice

Caiden earned $475 from mowing lawns last summer.He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52                     (Mr. Williams)       
• $831.10                 (Mrs. Hoch)
• $839.45                    (Mr. Krajunus)
• $846.80                   (Ms. Palombo)