Finance

Farmers borrow money to buy tractors. They have to make payments to pay back the money borrowed. What kind of expenses are most tractor payments?

• 
  They are fixed expenses, because the tractor will be payed off after a couple of months.

• They are fixed expenses, because the amount usually stays the same.

• They are variable expenses, because the payment changes every month.

• They are variable expenses, because the farmer only has to make two payments.

Cynthia spent 5.15 on items to make lemonade for her lemonade stand. She made 16.50 selling the lemonade. What is Cynthia’s profit?

• 
  $11.65

• 
  $21.65

• $11.45

• $11.35

Which of the following is NOT true about a bank?

• 
  A bank lets you borrow money.

• A bank keeps your money safe.

• 
  A bank lets you take out more money than what you have in your account.

• 
  A bank will lend you money.

Mr. Davidson shows some of his monthly expenses below.

Rent

Car payment

Gasoline

Day care

Groceries

Which of Mr. Davidson’s expenses are variable expenses?

• Rent, gasoline, and groceries

• Rent, car payment, and day care

• Gasoline and groceries

• All of the above

Liam bought 100 collectible baseball cards from a friend for 30.75. He sold the the same baseball cards to a collector for 85.25. How much profit did Liam make?

A credit union is like a bank. Which of the following is NOT a purpose of the credit union?

• Keep money safe

• Let you borrow money

• Let you make deposits

• 
  Spend your money

Jack spends the same amount for cable each month. What type of expense is Jack’s cable bill considered to be?

• Variable expense

• Fixed expense

• Profit expense

• None of the above

Hanna babysat for a friend and made 75. She got a birthday card from her grandma, and it had 100 in it. She spent 12.55 on a pair of earrings. She decided to put the rest of the money in the bank in her savings account. What is the best reason for her to put the money in the bank?

• Spend the money on something else

• Save the money and earn interest

• Donate the money

• None of these is a good reason to put money in a savings account.

Weston operates a snow-cone hut. The chart below shows Weston's expenses for the snow cone items he purchased for a week.

Ice-$25.65

Snow Cone Cup-$12.99

Spoons-$8.75

Snow Cone Flavors-$22.70

At the end of the week he made $225. What was Weston's profit for the week?

• $154.91

• $295.09

• $255.09

• $155.09

Which of the following best describes a payment that does not change over time?

• Fixed expense

• Variable expense

• Profit

• Savings