Applied math-1st semester Final Exam

True or False:

Needs are things you need to survive.

• True

• False

What two things does a budget compare?

• Income and Expenses
• Savings and Interest
• Income and Investments
• Expenses and Expenditures

Which of the following is an example of a want for most people?

• A warm jacket

• Transportation

• Ice cream

• Somewhere to live

What is the main purpose of setting a deadline for a goal

• To allow for as much time as possible

• To prevent procrastination (putting it off)

• To let other know you need help

• To make the goal seem less challenging

In the 50/30/20 rule, the 30 represents 30% of your income that should be put towards your ___________

• Wants

• Needs

• Savings

What is an OVERDRAFT FEE ?

• A fee you pay to see Mr. French's three legged horse

• A charge when more money is spent than what it is in the account.

• moving a balance from one account to another

Interest that is generated on money you put into an account plus the interest you make that money. In other words, with compound interest, you earn interest on your interest.

• mutual fund

• interest rate

• simple interest

• compound interest

It is a good idea to build a budget based on your income.

• True

• False

If someone asks for your Social Security Number, they really need it and you have to give it to them.

• true
• false

What is gross pay?

• The money that you earn before taking out deductions

• The money that you earn after taking out deductions