Personal Finance Assessment

Henry took out a loan to buy a car. What is the term used to describe the money that Henry owes to the bank, typically involving a repayment schedule and interest?

• Income

• Expense

• Credit

• Investment

Grace is applying for a car loan. Which term refers to the evaluation of her ability to repay the loan?

• Charitable giving

• Credit score

• Overdraft

• Budget

What is a fixed expense?

• A cost that changes based on usage or consumption

• A cost that remains the same each period regardless of activity

• A donation made to help others

• The interest earned on investments

What does the term 'philanthropy' refer to?

• The act of investing money to earn a return

• The act of giving money to help others

• The process of taking out a loan

• The practice of saving money in a bank

What is one way a student can participate in the economy of their community?

• Volunteering at a local library

• Doing a summer job

• Watching a movie

• Playing video games

Why is it important for students to learn to manage their money?

• To buy video games

• To increase their money

• To spend on holidays

• To learn history

What can be a consequence of Henry making poor financial decisions in his business?

• Increased savings

• Better grades in school

• Negative impact on the community's economy

• More leisure time

Which of the following is NOT a way mentioned for students to save money?

• Having a bank in their bedroom

• Saving for a car

• Buying new gadgets frequently

• Saving for college education

Imagine Nora checks her bank account and finds that she has withdrawn more money than what was available. What is this situation called?

• A type of bank loan

• A financial planning tool

• An overdraft

• A special type of bank account

Why is it important to have a budget?

• To ensure you can write unlimited checks

• To plan how money will be used and avoid overspending

• To increase the amount of money you earn

• To make charitable donations only