Chapter 3 - Personal Finance

Face value is determined by the U.S. Treasury Department.

• True
• False

Saving money is as much fun as spending it.

• True
• False

It's harder to set saving goals than it is to set spending goals.

• True
• False

Budgets are flexible.

• True
• False

When you work, you receive a paycheck every two weeks.

• True
• False

Which statement about people who live "paycheck to paycheck" is true?

• They do not have trouble earning enough to cover their bills.
• They often have a lot of stress because they are always worrying about not having enough money.
• They are willing to put their financial needs before their financial wants.
• all of the above

What's it called when you save money without having a specific purpose in mind?

• an open-ended savings goal
• an ineffective savings goal
• a goal-driven savings goal
• a purpose driven savings goal

Purchases, savings, and charitable donations are included in which part of a budget?

• expenses
• motivating factors
• financial goals
• income

In a budget, snacks and entertainment are examples of which of the following?

• fixed income
• flexible income
• fixed expenses
• flexible expenses

At the end of the month you subtract your actual expenses from your actual income. If the result is less than zero, what do you have?

• a surplus
• a deficit
• a balanced budget
• a missing entry