Financial Literacy 4th

In the fable about the grasshopper and the ant, the grasshopper was spending all his money now, in the present. When people spend all their money now, they:

• a. give up a chance to buy more goods and services in the future

• b. give up the chance to buy goods and services now

• c. have more money left to spend in the future

• d. are saving their money

Mr. Foster told his students that if they turned in their homework every day for a week, the class could have a special treat on Friday afternoon. The special treat is ________.

• a. interest

• b. a service

• c. a trade-off

• d. an incentive

Elva can either play soccer or basketball during recess. If Elva decided to play basketball, soccer is her _____________.

• a. interest

• b. incentive

• c. opportunity cost

• d. choice

David saves his money in a savings account at the bank. David is really happy because the bank pays him to save. The money that David earns from the bank is __________.

• a. interest

• b. opportunity cost

• c. a good

• d. a trade-off

Income not spent to buy goods and services now:

• savings

• opportunity cost

• short term

• tradeoffs

Giving up some of one thing in order to have something else:

• savings

• opportunity cost

• short term

• tradeoffs

A goal that can be reached quickly:

• savings

• opportunity cost

• short term

• tradeoffs

The next-best choice that is given up when a decision is made:

• savings

• opportunity cost

• short term

• tradeoffs

What is it called when someone takes money out of their bank account?

• deposit

• withdrawal

• incentive

What is it called when someone puts money into their bank account?

• deposit

• withdrawal

• incentive