Personal Finance Final Exam

Angie received her first paycheck. She was so excited about getting paid $10 an hour. She worked for 4 hours. Why was her actual check less than $40?

• Her budget didn't allow her to get $40
• Her net income was less than her gross income
• Her gross income was less than her net income
• Her boss lied to her and did not pay her enough

We create a ______________ with our income to force discipline and savings on our spending.

• budget
• gross pay
• loan
• expenses

Sara needs to balance her budget so that she does not create a ______________ that causes her to go into debt.

• deficit
• income
• budget
• expenses

Andrew was looking through his expenses and realized that his income was less than his expenses and that he was in _________________ to the bank.

• deficit
• debt
• budget
• expenses

When Abby realized she was getting paid $25 an hour, she was so excited! She didn't realize that number was her _________________ and not her net pay.

• net pay
• gross pay
• budget
• expenses

When creating a budget, it is important for one to realize what is really a ________________ and what is really a ______________.

• net...pay
• need...want
• budget...credit
• expenses...loan

Krissy got a new position at her job as financial officer. She quickly realized that the companies ____________ was way more than their _________________, causing them to go into major debt.

• net...pay
• need...want
• income...expenses
• expenses...income

Wow! The bank gave me a _________________! It's free money!!! Wait...what is this interest? Why is it costing me more money than I need? I have to pay this back!!!????

• loan
• scholarship
• debit card
• pencil

The _______________ card company gave me a limit of $1000 because they do not believe I have the capability to pay them back for more money.

• loan
• scholarship
• debit
• credit

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Dining out at local restaurants
• Loan payment on a new car
• Expenses for new clothes
• Postponing a purchase for a big-screen TV