Personal Finance Remediation

Multiple Choice

The amount of money that you owe to lenders is called what?

• bankruptcy
• credit
• debt
• interest

Multiple Choice

Which of the following does a person need to know to plan an effective budget?

• his or her credit score
• personal income
• statewide interest rates
• adjustable rate mortgages

Multiple Choice

When someone borrows a lender's money to make a purchase in exchange for paying that lender interest it is known as what?

• credit
• foreclosing
• investing
• savings

Multiple Choice

Which of the following is a characteristic of an effective budget?

• too much income
• investing more than you save
• expenses greater than your income
• spending less than your income

Multiple Choice

Retirement, college education, wedding, a nice trip, and a new truck are all what?

• reasons people save
• examples of undisciplined spending
• things bought on credit
• methods of investing

Multiple Choice

David wants to buy a new car.  Since the car costs more than the amount of money he has, David pays for half of the car out of his savings account and borrows the rest.  David now has what?

• budget
• debt
• investments
• savings

Multiple Choice

Which of the following MOST affects your ability to borrow money?

• your credit score
• your savings account
• your monthly income
• your political party

Multiple Choice

The amount of money you make each month is considered what?

• credit
• debt
• income
• interest

Multiple Choice

Barbara bought a $500 dress using her credit card.  By the time she finished paying back the credit card company, Barbara paid $575 for the dress.  The extra $75 was what?

• credit
• debt
• expenditure
• interest

Multiple Choice

Having a budget, investing in the future, and staying out of debt are ways citizens ______________.

• manage their money wisely
• influence government spending
• go bankrupt
• provide municipal revenue

Multiple Choice

Which of the following best describes personal finance?

• Managing your money wisely

• Spending all your money quickly

• Ignoring your expenses

• Only saving and never spending

Multiple Choice

Which of the following factors can affect how much income you earn from a job?

• The type of job you have

• How many hours you work

• When you work

• All of the above

Multiple Choice

Why is it important to make smart choices about how you spend your money?

• Because money is unlimited

• Because you can buy everything you want

• Because money is limited and you can't buy everything all the time

• Because spending money is fun

Multiple Select

Which of the following are considered 'needs' rather than 'wants'?

• Designer shoes

• A roof over your head

• Cell phones

• Enough food and water to stay healthy

Multiple Choice

Which of the following is an example of a variable expense?

• Car loan payment

• Rent

• Groceries

• Insurance

Multiple Select

Which of the following are examples of using credit?

• Getting a loan to buy a house

• Using a credit card to buy things

• Paying with cash

• Depositing money in a savings account

Multiple Choice

What is one disadvantage of using a credit card according to the comparison chart?

• Helps build credit history

• Users are liable for only $50 in cases of theft

• Easy for users to rack up high-interest debt

• Offers cash back or reward points

Multiple Choice

Why is it important to learn about personal finance?

• Because it helps you manage your money wisely throughout life.

• Because it is only useful for adults.

• Because it is required in school.

• Because it is only about saving money.