Personal Budgeting and Functions of the US Economy

When a person makes a plan on when to save and spend their money, they are making a....?

• Economy

• Personal Budget

• Market

• Competition

Spending money the right way takes knowledge and practice. What is the most likely reason that people comparison shop?

• To get the best deal

• To pay more for what they buy

• To pay the same as other people

• To view other stores

What is the most important role for the government in the US economy?

• To pay taxes

• To tell businesses how to spend their money

• To collect taxes

• to control how people spend money

Which of the following is NOT a function of the private businesses in the economy?

• To provide goods for people to buy

• To provide jobs for people

• To help people open up savings accounts for their money

• To pay taxes to the government

Why does the government tax people?

• Taxes pay for government programs such as schools and the military

• Taxes allow businesses to make more money

• So that no one can get too rich

• The government does not tax people

Which of the following is part of the government's role in the economy?

• Providing stocks for people to invest in

• Provide loans to people who want to buy homes

• Give interest to people who put their money into savings accounts

• Build roads, schools, hospitals, etc...

Which of the following is NOT a role that individuals play in the economy?

• Working to recieve a pay check

• Starting businesses

• Buying food and clothing

• Taxing their fellow citizens

Which of the following is NOT a role that banks have in the economy?

• Provide loans to people

• Tax customers to pay for new programs

• Help people invest their money

• Offer checking and savings accounts

Saving money in the bank earns interest for your account. Why does the bank pay interest?

• They give your money to the poor

• They bank is not open on most holidays

• They are using your money

• They pay you for being a customer

What do you call the money you make from providing a good or service?

• Income

• Taxes

• Savings

• Expenditures