Mr. G Personal Finance 1

Brenden works at a car dealership. Not only does he earn a base salary, he also earns commission. Based on this information, what should Brenden expect?

• Each of his sales will earn him the exact same amount of money.

• He will not earn any income if he does not make any sales during a month.

• He will be paid a percentage of the sales he makes in addition to his salary.

• Each of his paychecks will be for the exact same amount of money.

Bethany wants to create a monthly budget. In order to do this, what will she need to know?

• the current inflation rate

• her monthly income and expenses

• her savings account's interest rate

• the difference between bonds and stocks

Use the information to answer the following question.

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

What do the paychecks represent?

• her taxes

• her credit

• her income

• her interest

Why do people make personal budgets?

• to help them determine how to earn more resources

• to help them determine how to earn different resources

• to help them determine the best way to use a limited resource

• to help them determine the best way to use an unlimited resource

Darius wants to buy a new car. He has a well-paying job, but knows that he must save money for a while before he can afford the car. what should Darius do first?

• sell his old car

• create a budget

• get a different job

• apply for a credit card

What will making a personal budget help a person do?

• lower his or her tax rate

• earn a promotion at work

• plan for emergency expenses

• reduce his or her monthly bills

What is a risk of using credit cards?

• reducing income earned each month

• earning less on investments

• falling into unnecessary debt

• increasing the amount of taxes owed

Why is it a good idea to pay cash for purchases whenever possible?

• Paying with cash creates more jobs than paying with credit.

• Paying with credit can be more expensive than paying cash.

• People can get the things they want more quickly by paying with cash.

• People that often pay with cash are more are more likely to be approved for loans.

What statement BEST describes saving?

• loaning money to another individual

• earning money in exchange for work

• planning how to spend one's income

• setting aside money for the future