7th Grade Final Exam ReDo

Which statement explains why budgets are important for managing personal money effectively?

• Budgets track only past expenses.

• Budgets concentrate solely on increasing income.

• Budgets assign money to cover both expenses and savings.

• Budgets are mainly meant to limit spending without considering savings.

How does using credit impact the overall cost of goods and services?

• It decreases the overall cost slightly

• It results in cost savings in the long run.

• It increases the overall cost due to interest charges.

• It ensures the most affordable cost for the consumer.

Which of the following is an example of a source of income earned through work?

• retirement benefits

• wages from a part-time job

• spousal support following a divorce

• earnings from financial investments

What is a cost of credit?

• losing a loan

• paying interest

• losing an investment

• paying a full loan amount now

Which is a benefit of using a credit card?

• It accumulates interest on purchases

• It allows you to establish credit history

• It allows you to borrow money free of interest.

• It accumulates wealth over time.

Which BEST describes how a budget can help someone manage their money wisely?

• It can help someone determine how to borrow money.

• It can help someone determine how to earn more money

• It can help someone determine how to earn more interest.

• It can help someone determine how long it will take to save money.

How can people make sure they save part of their money regularly?

• by using all their money and avoiding credit

• by borrowing money from friends when they need it

• by following plans for money but relying on good luck

• by making a plan for spending and keeping track of expenses

Which THREE situations BEST describe reasons to use a credit card?

• Allison makes occasional small purchases with a credit card with a low limit to build up her credit score.

• Ellie used her credit card to buy a new purse that she really wanted, even though she doesn't get paid until next Friday.

• Jaime's car broke down unexpectedly. She needs to pay to fix it with her credit card to have a way to get to and from work.

• Ray charges his groceries on a credit card, and he uses the money from his grocery budget to pay the card off each month.

• Logan used his credit card to buy groceries for the reward points, even though he did not pay off the balance from his charges last month.

Which practice involves answering these questions in the picture? (click the pic to enlarge if needed)

• banking

• borrowing

• budgeting

• taxation

Which BEST describes income?

• Income is received from luck.

• Income is received from work.

• Income is not received from labor.

• Income is received from personal connections.