Personal Finance Unit 1

Personal expenses are recorded in this financial document.

• budget

• income

• taxes

• stock market

Why do cities use tax dollars to fund water services?

• because private companies do not want the work

• because the services do not provide jobs for people in the community

• because the public does not require the service

• because the services are necessary a healthy community

Which of the following scenarios demonstrates a good budgeting practice?

• Amy's monthly income is more than her monthly spending.

• Carly’s monthly taxes are equal to her monthly expenses.

• June spends more money each month than she earns at his job.

• Sam spends more money each month than he earns at his job.

A person balances spending and saving when creating this document

• savings account

• taxes

• investment portfolio

• budget

Use the information to answer the question.

“I want to open my own clothing store. I will need to take out a loan from my bank.”

―Anna Smith, entrepreneur

Which of the following BEST explains what Anna should expect by taking a loan from her bank?

• I will have to pay each employee for their services

• I will have to receive money from my customers.

• There is no set timeline on when I have to pay the loan back.

• I will have to take out a loan and pay the loan plus interest.

What document is an outline of a person's finances?

• a loan application

• a savings account

• a personal budget

• a checking account

Households receive income when they

• pay their taxes

• create a budget tracking their savings

• receive a small business loan from the bank

• sell their labor to a business or government

Use the information to answer the question.

I want to open my own quilting shop. What can I expect before my shop opens?”

―Leisha Brown, quilter

Which of the following BEST describes what Leisha should expect to happen before opening her shop?

• She should expect to make a business plan.

• She should expect to complete the task on her own.

• She should expect that someone will donate supplies for free.

• She should expect to receive a supplement from the government to open her shop.

Kroger usually sells hotdogs for 2.99. This week they are selling hotdogs for 1.25. This is an example of which of the following:

• consumer service

• price incentive

• budget

• spending and saving

This is the best function of the business sector

• creates wants and needs

• produces goods and services

• supplies labor

• is financed by the government