Unit 10 Test review 2022

Chris puts $100 a month into an account to prepare for all of her Christmas shopping. Which of the following terms best describes what Chris is doing?

• Saving

• Investing

• Loan

• Debt

Michael bought a new I-phone from Best Buy and will be making monthly payments to pay for the phone. Which term best describes this situation?

• Deposit

• Debit

• Credit

• Stock

Which of the following scenarios is an example of creating personal debt?

• Finding $5 in your pocket

• Purchasing groceries with a credit card

• Making the last payment on your mortgage

• Saving your money in the bank

Which of the following situations is NOT an example of a loan?

• Buying groceries with a debit card

• Buying a new shirt with a credit card

• Paying a mortgage

• Financing monthly car payments over several years

Which option is the safest place to keep your money?

• Bank Account

• Your Wallet

• Stock Market

• Your Freezer

What would most likely increase the amount of money in someone's checking account?

• Increase credit card debt

• Purchase a new automobile for cash

• Reduce spending and increase income

• Play the lottery

What is usually the number one rule for people to grow wealth over time?

• Pay the minimum on their credit cards

• Purchase a new car

• Spend less than they earn

• Buy expensive new clothing

If you put $100 in a savings account that has a 2% interest rate, how much money will you have at the end of 1 year if you never touch the money?

• Less than $100

• More than $100

• It will still have only $100

• Over $10,000

Being on a budget means to

• pay your bills every month at the due date 

• make a plan of your expenses to be less than or equal to your income 

• your bills are generally paid by their due date 

• earn enough money to be able to live well 

Which statement gives the BEST explanation on how banks make money?

• They require their customers to pay an extra tax.

• They sell fancy pens with the bank’s name on them.

• They charge an interest rate when people borrow money, or when they miss paying a loan/credit card payment.

• They replace their employees with ATMs (Automated Teller Machine).