Banking and Financial options Test Review

Which of the following would be considered a want rather than a need for most people?

• a place to live

• nutritious food

• a smartphone

• Warm clothes in the winter

You are going to buy a computer, but first you want to do some research to helpyou select the best model for your needs. Where should you look for the fairestand most reliable information?

• The website of a popular computer company

• Sales flyer in the local newspaper

• Advertisements that a computer company puts in a computer magazine

• An independent consumer education website that reviews and rates computers

You are creating a budget for your new business. What should you include?

• Fixed expenses but not income

• All income and expenses

• Fixed and variable expenses but not taxes

• Income but not variable expenses

Which of the following is a variable expense for many adults?

• Their monthly rent payment

• The monthly payment on their car loan

• Their monthly cost of eating out at restaurants

• Their monthly payment for health insurance

Your friend’s parents are worried about going over their budget for the month. Which expense would you suggest is NOT a need?

• Car insurance

• Cable service

• Groceries

• Rent payment

If you know the unit prices of two different brands of an item, you are better able to:

• Estimate how much of the item you will need

• Determine which of the two brands is higher quality

• Compare the prices of the two brands

• --

You received $50 as a birthday gift and chose to spend it on new wallpaper for yourroom. The opportunity cost of this decision is:

• The other items you could have purchased with your $50

• The price of the wallpaper you bought

• The time you could have spent doing other things

Which of the following is NOT a successful budgeting strategy?

• Pay with a credit card if you have a hard time sticking to a budget

• Revisit your budget regularly and make adjustments

• Keep some extra money in your budget for emergencies

• Think about which items are your most important needs

Which of the following is the best reason to use cash for purchases?

• Getting more from the ATM is easy to do

• Splitting bills with friends is easier

• Losing it won’t be a big deal

• Keeping track of how much you have spent is simple

What factor has the biggest impact on a credit score?

• The number of years that you have used credit responsibly

• Your history of making payments on time

• The amount of money you owe on your credit cards

• Having a variety of types of credit