Personal Money Management Test

Which describes the total of a person's earnings when they get a job?

• Credit

• Income

• Investment

• Savings

Which is the MOST LIKELY result from an increase in income?

• Increased spending

• Increased use of credit

• Cashing out investments

• Decline in savings and investments

Which is a plan for saving and spending?

• Budget

• Checking account

• Savings account

• Will

Which type of bank account is most linked to spending?

• Checking

• Investment

• Mutual Fund

• Savings

Using credit is most like which of the following?

• Keeping cash hidden in your closet

• Spending money from your piggy bank

• using birthday money to make a purchase

• Borrowing money from a stranger with a promise to pay back more than you borrowed.

Which is most likely to be used in the USA to become a home owner?

• paying in cash

• getting the house as a gift

• borrowing most of the money

• money from winning the lottery

What is the difference between income and expenses?

• Income is money that is earned, while expenses are spending money

• Income is saving money, while expenses are investing money

• Income is spending money, while expenses are earning money

• Income is earning money, while expenses are saving money

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

• power bill

• concert tickets

• car loan payment

• football cleats

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

• rent payment

• mortgage

• cable bill

• groceries

What is one result of having an overdraft?

• an additional fee

• increased interest

• decreased interest

• higher credit score