SS Final Review

1. Which describes the total of a person’s earnings when they get a job?

 

• CREDIT

• INCOME

• INVESTMENT

• SAVINGS

Which is the MOST LIKELY result from an increase in income?

 

• increased spending

• increased use of credit

•   cashing out investments

• decline in savings and investments

Which is a plan for saving and spending?

• budget

• checking account

• savings account

• will

What type of bank account is most linked to spending?

• checking

• investment

• mutual fund

• savings

Which of the following is the most common use of credit?

• keeping cash hidden in your closet

•   spending money from your piggy bank

• using “birthday money” to make a purchase

• borrowing money from a stranger with a promise to pay back more than you borrowed

Which is MOST LIKELY to be used in the US to become a homeowner?

• paying in cash

• getting the house as a gift

• borrowing most of the money

•    money from winning the lottery

What is the difference between income and expenses?

 

• Income is money that is earned, while expenses are spending money.

• Income is saving money, while expenses are investing money.

• Income is spending money, while expenses are earning money.

• Income is earning money, while expenses are saving money.

Which of the following is an example of a fixed expense?

• power bill

• concert tickets

• car loan payment

• football cleats

Which of the following is an example of a variable expense?

 

• rent payment

• mortgage

• cable bill

• groceries

What is one result of having an overdraft?

• an additional fee

• increased interest

• decreased interest

• higher credit score