Personal Finance Practice Quiz

What is the RELATIONSHIP between Income and Spending?

• Income should always be spent each month

• Spending more money each month will increase income

• Income and Spending should be balanced in creating a budget

• Spending more money than income each month will not create problems

What is an ADVANTAGE of saving money each month?

• Savings allow you to pay for an unexpected expense

• Savings are a way to increase you monthly work income

• Better interest rate on credit card purchases

• Build your credit score

The MAIN purpose of investing

• Build Credit

• Build Wealth

• Purchase a Car

• Create Emergency Fund

Sasha is a bank manager. Every two weeks she receives a paycheck from the bank. What do they paychecks represent?

• Taxes

• Credit

• Income

• Interest

Why do people make Personal Budgets?

• Determine how to earn More Resources

• Determine how to earn Different Resources

• Determine how to use a Limited Resource

• Determine how to use an Unlimited Resource

Which BEST describes saving?

• Putting money away for future use

• Loaning Money

• Earning Money

• Planning how to spend income

When a Borrower receives something of value now and agrees to repay the lender at a some date in the future, the borrower is...

• Making an investment

• Saving

• Using Credit

• Using Debit

What is a reasonable expense to cover using a loan from a bank>

• A parking fee

• A new Car

• A restaurant bill

• A concert ticket