Personal Finance Quiz #1

True or False: You can give by donating your time?

• True

• False

A fee you pay for borrowing someone else's money is ________

• Money

• Time

• Interest

• Penalty

What is investing?

• Possibility that an investment will fail to pay the expected return

• Money invested is usually used to pay for long-term goals

• Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss

• The danger that money won’t be worth as much in the future as it is today.

How does time effect money?

• The more money you save the more you will make

• Saving for a short period of time proves long term investments

• The longer you save your money the more you will make

The physical form of money, such as coins or paper money.

• Balance

• Budget

• Cash

• Copay

What is it called when someone doesn't have enough money in an account to cover a charge?

• Insufficient funds

• Compound interest

• Pending charge

• Negative balance

When we budget or buy things what do we need to know?

• How much you will get paid next week.

• How much money you have

• Weekend plans

What is the purpose of a budget?

• To limit spending and track income and expenses
• To obtain a high credit score
• To borrow money from friends or family

Luisa earned $1,200 at her part-time job, and $500 from babysitting in cash. Which is TRUE?

• She will report her total income as $1,700.

• She will report her total income as $1,200.

• She will report her total income as $500.

• Luisa is required to file a tax return.

Check all statements that are true about a balanced budget.

• A balanced budget is when you have more expense than income.

• A balanced budget is when you have the same number of ten dollar bills as one dollar bills.

• A balanced budget is when income is equal to or greater than expenses.

• A balanced budget helps you make responsible spending and saving decisions.