Personal Finance Practice

What is one benefit of depositing your money into a savings account versus a checking account?

• A. to earn the most money on the deposit

• B. to use the money to pay monthly bills and expenses

• C. to make sure the bank has enough cash to cover their deposit

• D. to make sure they pay the lowest possible tax rate on the deposit

How do banks in the United States make MOST of their money?

• A. taking customers’ property

• B. investing in the stock market

• C. selling houses that they buy from customers

• D. loaning money to individuals and businesses

Which of the following is the BEST title for the list?

• A. Benefits of bank loans

• B. Benefits of a debit card

• C. Benefits of savings accounts

• D. Benefits of checking accounts

“I want to open my own restaurant. I will need to take out a loan from my bank.” Which of the following BEST explains what should Jayla expect by taking a loan from her bank?

• A. to have to pay her employees their monthly salaries

• B. to repay the bank based on the amount of the loan plus interest

• C. to receive money from her employees to help her repay the loan

• D. to be so successful that she will be able to repay the loan in full right away

Which of the four major sectors in the US economy provides checking accounts, savings accounts, and loans?

• A. banks

• B. Households

• C. government

• D. private businesses

Which of the four sectors of the U.S. economy is formed by profit-seeking entrepreneurs who use resources to produce goods and services to sell?

• A. banks

• B. households

• C. government

• D. private businesses

Which of the following BEST describes the business sector of the U.S. economy?

• A. The business sector creates wants and needs.

• B. The business sector is financed by the government.

• C. The business sector supplies labor to resource markets.

• D. The business sector produces goods and provides services.

Which of the following BEST completes the flowchart?

• A. Taxes

• B. Goods

• C. Services

• D. Resources

Which of the following is one role of the household sector of an economy?

• A. to collect taxes

• B. to pay interest

• C. to provide services

• D. to consume goods

Why do households sell their labor to businesses?

• A. They receive income in exchange for labor.

• B. They receive tax money in exchange for labor.

• C. They receive small business loans in exchange for labor.

• D. They receive government services in exchange for labor.