Money Management Review

The common name for U.S. currency is:

• Orange backs

• Blue backs

• Green backs

• Yellow backs

Which of the following does the Federal Reserve use to regulate the nation's money supply?

• Fiscal policy

• Proposing legislation

• Monetary policy

• Regulations

Identify the background color of a U.S. $5.00 bill.

• Orange

• Blue

• Green

• Yellow

Which of the following statements is usually true about individuals who are financially literate?

• They have high debt and low savings

• They understand the basics of personal finance and money management

• They almost always choose stocks and bonds that increase in value

• They achieve all of their financial goals

New coins and currency make their way into the general economy, consumers and businesses, through the distribution system of the:

• Treasurer of the United States

• Secretary of the Department of Treasury

• Federal Reserve System

• U.S. Federal Mint

Scott just got an ATM card to use and must choose a PIN (Personal Identification Number). How should he select a PIN that will give him maximum protection against anyone else being able to find out what the PIN is?

• Use his birth date as his personal identification number

• Use a random selection of letters and numbers

• Use his first initial and last name as his personal identification number

• Use the name of a friend, family member, or pet

The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are:

• Profits from business

• Dividends and interest

• Rents

• Salaries, wages, and tips

Which statement best describes the relationship between a person's educational level and that person's potential earning power?

• Education has no effect on a person's potential earning power

• A person with a professional degree is likely to earn at least four times as much per year as a person who did not complete high school

• Attaining a higher educational level affects the earning potential only for people over 40 years old

• Attaining a higher educational level decreases potential earning power

What is budgeting?

• Spending all your money at once

• Saving all your money and not spending any

• Planning how to spend and save your money wisely

• Borrowing money from friends

Why is saving money important?

• So you can buy snacks

• To have money for emergencies

• To make your piggy bank heavy

• All of the above