Personal Finance Test Prep #1

What is a good way for making sure you have enough money to spend and save?

• Spend on variable expenses before fixed expenses.

• Buy the most expensive and safest items.

• Have a budget for your income and expenses.

• Buy on credit and make the minimum payment.

What kind of payment option is a card that allows money to be withdrawn from a person’s bank account?

• gift certificate

• credit card

• gift certificate

• debit card

When dealing with credit cards it is important to know your card’s _______.

• annual percentage rate (annual interest rate)

• payment due date

• credit limit

• all of the above

What is the term for the money you earn?

• interest

• income

• expense

• savings

What is an agreement to receive cash, goods, or services now and pay for them at a later date?

• savings

• credit

• income

• investment

To use money, time, or items toward future benefits or making more money is called _______.

• saving

• investing

• borrowing

• paying off

If someone is saving money for less than two months, it is considered what type of goal?

• short-term

• long-term

• medium-term

• terminal

This means giving up the opportunity to spend in the present in order to benefit later on.

• applying for credit cards

• saving for the future

• going on a shopping spree

• using your savings

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

• Food

• Entertainment

• Tranportation

• Savings

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

• Rent

• Telephone bill

• Food

• Entertainment