Personal Finance- Review

What do households get in return for selling their labor to businesses?

• services

• free things

• income

• loans

Households are made up of people who are

• goods

• services

• resources

• taxes

Which of the following describes the business sector of the US economy?

• produces goods and provides services

• supplies labor to resource markets

• creates wants and needs

• financed by the government

Which of the following describes the banks sector of the US economy?

• collects taxes from households and businesses

• made up of people who are resources and consumers

• produces goods and provides services

• provides checking accounts, savings accounts, and loans

What is a benefit of having a savings account?

• to use the money to pay monthly bills

• to earn interest from your money

• to make sure your taxes are lower on the deposit

• so the bank has enough money

Why do banks loan money to households and businesses?

• the loans are used to by goods and services

• banks are publicly funded and provide a public service

• because the government will pay backs for providing loans

• to earn a profit by charging interest on the loan

How do households and businesses support the government economically?

• providing loans for the government

• perform services for the government

• pay taxes to the government

• purchase services from the government

Which sector of the US economy produces more PUBLIC GOODS?

• banks

• government

• households

• private businesses

The amount of money a person spends would be called _____________________________.

• income

• savings

• expenses

• investments

The money that a person earns or receives is called _____________________________.

• income

• savings

• expenses

• investments