PFHS 3.02 Financial Literacy

In which category are a new car, designer clothes, and gaming systems?

• wants

• needs

• values

• income

Why is saving important?

• because the future is unpredictable

• because people need to buy goods and services to grow the economy

• because protecting assets such as a house and vehicles is critical in case of accidents

• because people need to support local banks and credit unions

Sarah was very upset when her new phone broke the week after she purchased it. In her anger, she went to the local phone store and yelled at the sales person who had nothing to do with it. Which characteristic of being a wise consumer did Sarah violate?

• read labels and follow instructions

• use products safely

• complain effectively and refuse poor equipment

• resist high pressure sales people

When Greg received his first paycheck, he was suprised to see it was much lower than expected. He had not considered the regular deductions that would be taken out of his check. The amount Greg received is referred to as:

• gross income

• net income

• hourly wage

• weekly wage

When Miranda opened her credit card bill, she was suprised to see that the amount she owed was more than the cost of the things she had purchased. What is the probable cause of this difference?

• credit

• debit

• interest

• equity

Sally is excited about her new job. The salary she was quoted for the position does not have deductions taken out of the amount. What type of income was Sally quoted to earn?

• gross income

• net income

• hourly income

• weekly income

Samantha is looking for an institution for her money management. She is looking for an account that pays interest on deposits, does not have check writing privileges, and has easy withdrawal access on demand. Which type of account would be best for Samantha?

• checking account

• certificate of deposit

• savings account

• mortgage

Money earned from saving accounts and investments is an example of:

• a spending plan

• income

• expenses

• a saving account

Fundamental beliefs or practices of personal importance should be placed in which category?

• wants

• needs

• values

• income

The newlyweds wanted to start their marriage being financially responsible. What tool could they use to keep track of where their money is going?

• spending plan

• income

• expenses

• savings account