3.02 Money Management Quiz

Which are examples of expenses?

• interest and bonuses

• food and insurance

• wages and salary

• allowance and scholarships

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 house and vehicles is critical in case of accidents

• because people need to support local banks and credit unions

Which is the best way to increase the amount of one's savings, without depositing more money?

• save at least two months' worth of expenses

• take advantage of the time value of money

• save money in a safe at home to protect it against loss

• practice "pay yourself first"

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

• wants

• needs

• values

• income

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

• credit

• debit

• interest

• equity

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

Low interest rates, no membership fees, and grace periods are important criteria to consider when selecting:

• credit cards

• savings accounts

• mortgages

• checking accounts

Marilyn believes that a portion of her income should go to charitable causes to help those less fortunate. This is an example of:

• wants

• needs

• values

• savings

An ability to borrow a limited amount of money the demand, small monthly payments, and no end date are characteristics of which money tool?

• credit card

• debit card

• mortgage

• car loan

Darrell's paycheck has had the taxes and benefits deducted. His take-home pay is referred to as:

• a spending plan

• net income

• gross income

• expenses