Financial Literacy Review

Financial Literacy Review

One of the most important lessons!

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Multiple Select

Define budget.

• The amount of money earned over a period of time

• An expense that differs from month to month

• An expense that is the same amount and cannot easily be changed

• A plan that is used to determine how money will be spent

Multiple Select

Define variable expense.

• The amount of money earned over a period of time

• An expense that differs from month to month

• An expense that is the same amount and cannot easily be changed

• A plan that is used to determine how money will be spent

Multiple Select

Define compound interest.

• Interest earned on the principal

• The percent of the principal that is earned in return for loaning the bank funds

• The initial deposit into an account

• Interest earned on both the principal and any previously earned interest

Multiple Select

Which of the following best describes net worth?

• The value of your assets added to the value of your liabilities.

• The value of your assets subtracted from the value of your liabilities.

• The value of your liabilities subtracted from the value of your assets.

• The value of your assets multiplied by the value of your liabilities.

Multiple Select

Define interest rate.

• Interest earned on the principal

• The percent of the principal that is earned in return for loaning the bank funds

• The initial deposit into an account

• Interest earned on both the principal and any previously earned interest

Multiple Select

Define principal.

• Interest earned on the principal

• The percent of the principal that is earned in return for loaning the bank funds

• The initial deposit into an account

• Interest earned on both the principal and any previously earned interest

Multiple Select

Define income.

• The amount of money earned over a period of time

• An expense that differs from month to month

• An expense that is the same amount and cannot easily be changed

• A plan that is used to determine how money will be spent

Multiple Select

Define simple interest.

• Interest earned on the principal

• The percent of the principal that is earned in return for loaning the bank funds

• The initial deposit into an account

• Interest earned on both the principal and any previously earned interest

Multiple Select

Define fixed expense.

• The amount of money earned over a period of time

• An expense that differs from month to month

• An expense that is the same amount and cannot easily be changed

• A plan that is used to determine how money will be spent

Multiple Choice

Manny needs to earn $2,880 per month in order to meet his basic needs. If he takes a job earning $18 per hour, then how many hours will he need to work each month in order to meet his basic needs?

• 140 hours

• 150 hours

• 160 hours

• 170 hours

Multiple Choice

The table below shows the assets and liabilities of the Romero family. Use the information to determine the NET WORTH.

• $130,050

• $130,550

• $131,125

• $131,625

Multiple Choice

The table below shows the assets and liabilities of the Romero family. Use the information to determine the TOTAL LIABILITIES.

• -$3,175

• -$3,075

• -$3,325

• -$3,580

Multiple Choice

The table below shows the assets and liabilities of the Romero family. Use the information to determine the TOTAL ASSETS.

• $133,600

• $134,150

• $133,635

• $133,200

Multiple Choice

Patel’s $2,500 monthly budget breakdown is shown in the chart below. Which of the following best represents the percentage of Patel’s budget that is designated for savings?

• 20%

• 12%

• 16%

• 30%

Multiple Choice

Patel’s $2,500 monthly budget breakdown is shown in the chart below. Which of the following is a true statement regarding Patel’s monthly budget?

• More than 50% of Patel’s budget is spent on rent.

• Patel is saving more than 10% of her monthly income.

• Patel’s car payment and other spending account for more than 25% of her monthly income.

• Patel is spending more than 10% of her monthly income on her car payment.

Multiple Choice

The budget below represents the necessary monthly costs associated with raising a family of four in Beaumont, Texas. Which equation can be used to determine y, the minimum amount of money the family must earn each year?

• y = 2,550 x 12

• y = 2,550 x 52

• y = 2,550 ÷ 12

• y = 2,550 ÷ 52