Personal Finance: My World Interactive Pages 61-62

Income is:

• money that people receive from the work they do or the money they save or invest

• money that people pay people for the work those people do for them

• money saved in a bank

• money for natural resources

Like all resources, income is unlimited, while people's needs and wants are limited.

• True

• False

A budget is:

• a spreadsheet that shows debt

• a savings plan for a bank

• a plan that shows income and expenses over a period of time

• a booklet that outlines loans

In a budget, income should be:

• less than debt

• less than expenses

• equal to or less than expenses

• equal to or greater than expenses

When making a budget, some money should be reserved for saving. Saving is

• the act of setting money aside for future use

• just a waste of time

• the act of paying off a debt

• the act of getting a credit card

Many people save money by taking money out of a bank

• True

• False

A bank is:

• a business that buys satellites

• a business that pays out money only

• a business that keeps money, makes loans, and offers other financial services

• a business that sells popular products

Interest is:

• the price paid for using Canadian Dollars

• the price paid for using someone else's money

• when you really are interested in something

• payments on an automobile

Banks make loans and are a big part of economic growth

• True

• False

Loans are a form of

• debt

• currency

• credit

• savings