Business Leadership Test Review

Why is it important to have an emergency fund?

• The fund is used to pay for your health and car insurance, where emergencies are common.
• The fund is used to pay for college so you don't have to take out student loans.
• The fund is used to pay for unexpected expenses, so that you don't have to go into debt if there's an emergency.
• The fund is used to make donations to charities, who need your help to do good work.

Kellen is saving for a new video game system, which costs $300. He receives an allowance of $30 per month, and he usually spends $15 and saves $15 each time. How many months will it be until Kellen has enough saved to buy the game system?

• 10 months
• 12 months
• 20 months
• 30 months

Now that she's got her own apartment and her first high-paying job, Rita is creating a budget. What are the two main categories that will help her form a budget?

• Paycheck and taxes
• Insurance and investments
• Income and expenses
• Credit cards and debit cards

Which statement best describes NEEDS vs WANTS?

• NEEDS are monthly bills you must pay, while WANTS are monthly bills you are excited to pay.
• NEEDS are required expenses you cannot avoid, while WANTS are optional items you choose to buy.
• NEEDS are expenses for your entire family, while WANTS are expenses for you personally.
• NEEDS are expenses the government pays for you, while WANTS are expenses you must pay for yourself.

Which action would INCREASE the money in Shirley's checking account?

• She uses a person-to-person app to pay a friend for dinner.
• She uses her debit card to buy a holiday gift.
• She uses her smartphone to deposit a check from her grandpa.
• She uses a prepaid card to pay for a month of movie streaming.

Phillip purchased a share of Microsoft. He can earn money on this investment by selling it for more than he purchased it for. What type of investment did Phillip purchase?

• Mutual Fund
• Bond
• Stock
• Index Fund

Your friend, Marco, is excited to apply for his first summer job. However, he needs to submit a resume and is unsure of what to include. What information would you recommend he include in his resume?

• His parents' names and contact information
• His involvement in extracurricular activities & leadership roles
• Courses he plans to take in high school
• A list of his favorite websites and apps

You want to reduce the amount of loans you'll need to take out for college, so you want to save as much money as you can ahead of time. What's the BEST strategy?

• Every time you receive a paycheck, spend carefully and then save any money you have left over at the end of the month.
• When you receive any income, either through gifts, allowance, or working, set a goal of saving at least half before you spend the other half.
• Spend whatever you want during the first 2 years of high school, but then save everything you earn during the last 2 years of high school.
• Don't do anything fun during high school so you're not tempted to spend money.

Jodi wants to visit her extended family in Barbados next summer, and the flight costs $450. How much does she need to save each month if she wants to buy the flight in exactly 9 months?

• $9
• $45
• $50
• $90

Which statement best describes what a budget is?

• A list of all the money you spent during the last month
• A plan for how much income you expect to have and how you want to save and spend it
• A statement from your bank that shows your ATM withdrawals
• A list for which scholarship and grants you will use to pay for college