Personal Finance

What is a reasonable expense to cover using a loan from a bank?

• a new car

• a concert ticket

• a restaurant bill

• a parking ticket fee

Why is it a good idea to pay cash for purchases whenever possible?

• Paying with cash creates more jobs than paying with credit.

• Paying with credit can be more expensive than paying with cash.

• People can get the things they want more quickly by paying with cash.

• People who can pay with cash are more likely to be approved for loans.

What is one risk of using credit cards/

• getting into too much debt

• earning less on investments

• reducing earned each month

• increasing the amount of taxes owed

What is one difference between saving and investing?

• People cannot grow wealthy by investing money, only saving.

• People can earn more money by saving than they can by investing.

• People cannot get back money they save, but they can get back money they invest.

• People who save their money are less likely to lose money than people who invest.

what is the MAIN purpose of investing?

• the build credit

• to make money

• to purchase an item

• to create an emeregency fund

Which statement about investments is correct?

• There is no guarantee an investment will pay off.

• Investments always pay more than savings accounts.

• Investments are insured by the United States government.

• There is less risk in investing than in opening a savings account.

What statement BEST describes saving?

• loaning money to another individual

• earning money in exchange for work

• planning how to spend one's income

• setting aside money for the future

What is the purpose of an emergency fund?

• to pay monthly expenses

• to pay for unexpected costs

• to make a down payment on a vehicle

• to take a family vacation in the summer

Darius wants to buy a new car. He has a well-paying job, but knows that he must save his money for a while before he can afford the car. What should Darius do first?

• sell his old car

• create a budget

• get a different job

• apply for a credit card

Who would MOST likely provide innovation and creativity to an economy?

• entrepreneurs

• the legislature

• factory workers

• the prime minister