AFA Unit 1 Review

A plan for spending and saving. You must consider both income and expenses.

• budget

• banking

• hoarding

• investing

An expense that does NOT change from month to month.

• Fixed expense

• variable expense

• variable rate

• fixed variable

An expense that changes every month.

• fixed expense

• variable expense

• variable rate

• fixed variable

Something thought to be an essential item required for life (food, water, etc.)

• surplus

• want

• need

• deficit

Something unnecessary but desired. An item which increases the quality of life (video games, DVD's, etc.)

• surplus

• want

• need

• deficit

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

• A place to live
• A nice car
• Designer jeans

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

• A warm jacket
• Transportation
• Ice cream

Having enough money to cover all your expenses mean you have ____

• Debt
• Balanced Budget
• Uneven Budget

What is a good reason to save money?

• To have money to buy things
• To have money put aside for emergencies
• For a future purchase
• All choices

Your 3 year investment of $20,000 received 5.2% interest compounded annually.  What is your total return?

• $23,285.05
• $3,285.05
• $2,385
• $32,285