Personal Finance Review

Use the information on the chart to answer the following question.

Which expense in the chart would make the MOST sense for getting a loan from the bank?

• Parking ticket

• House

• Concert Ticket

• Restaurant Bill

Which of the following is an advantage of saving money each month?

• Savings gives you a better interest rate on credit card purchases.

• Savings increase your monthly work income.

• Savings allow individual to pay for an unexpected expense without going into debt.

• Savings create the opportunity to build your credit score.

Use the information to answer the question.

Scott wants to buy a Surface Pro 8 and is considering buying the computer on credit instead of paying with cash. Based on the table, why is it a good idea for Scott to pay cash for the purchase?

• The minimum payment of $40 is too high for Johnny’s budget.

• The total cost of the iPhone is much higher if he pays using credit.

• The original cost of the computer would be lower if he paid in cash

• The interest rate would be lower if Johnny paid cash for the computer.

What is the MAIN purpose of investing?

• to build credit

• to create an emergency fund

• to purchase a phone

• to build wealth

Which statement about the relationship between income and spending is correct?

• You should balance income and spending when creating a budget.

• Income should always be spent each month.

• Spending more money each month will increase income.

• Spending more money than income each month will not create problems.

Use the information to answer the following question.

Jane owns her own small business and employs 20 people, including Stacy. Jane took out a personal loan from the bank; that she must pay back even if the business fails. Stacy writes for Jane’s small business and three other newspapers.

Which of the following is TRUE based on the paragraph?

• Jane took on a personal risk to start a newspaper business.

• Stacy and Jane both took personal risks to start the newspaper.

• Stacy is an investor hoping to make a profit from Jane’s newspaper.

• The bank is responsible for production decisions for Jane’s business.

Use the information on the chart to answer the question.

What would be the BEST way to balance this budget?

• earn a lot more money

• borrow more money

• spend more money

• lower some expenses

Lory is a bank manager. Every two weeks she receives a paycheck from the bank.

What do Lory’s paychecks represent?

• The income received from work.

• The taxes received from work.

• The credit received from work.

• The interest received from work.

Which individual would be BEST prepared for an unexpected expense?

• Kim is most prepared because she has the highest income.

• Scott is most prepared because he has the lowest monthly expenses.

• Nikki is most prepared because she is saving more money each month.

• Kim is most prepared because she has the highest monthly expenses.

Who is BEST prepared to buy a car in one year's time?