Personal Finance and Economics Final Exam

paying for something with money that is borrowed and must be paid back, usually with interest

• credit

• income

• resources

• salary

What is an emergency fund?

• A savings account set aside for unexpected situations.

• A way to invest for retirement.

• Something most people don't need, because emergencies are rare.

• An investment account that can grow over time.

What is debt?

• Money you have borrowed and need to pay back

• Money you make from working at a job

• Money you make from the government

• Taxes that you pay when you buy something

Medium of exchange used to buy goods and services.

• Credit

• Investing

• Saving

• Money

Buy something now and pay for it later. 

• Credit

• Debit

• Investing

• Spending

Why is it important to prepare and follow a budget?

• A budget increases a persons income.

• A budget helps people make responsible economic decisions.

• Budgets help people stick to a health plan.

• Budgets help determine the best educational plan for a student.

You cut the grass. Your parents give you $5. What is that called in a personal budget?

• Expenditure

• Donation

• Income

• Expense

Which of the following is the most financially responsible decision?

• Macy earned $40 washing cars. She donates it all to save the turtles.

• Jana earns $10 for doing chores. She gets one toy at the dollar store and saves the other $9.

• Jackson receives $20 for his birthday. He spends $30 at target.

• Brendyn earns $50 selling his video games. He spends $50 on new video games.

Which is an example of income?

• Money you get for raking leaves

• Money you give to charity

• Money you spend on ice cream

• Money you waste on bubble gum

You haven't finished your homework, but you decide to go to the movies anyway. What is this an example of?

• This is an example of an expense.

• This is an example of an opportunity cost.

• This is an example of savings.

• This is an example of income.