Fin Ed Term 2 Test

What is the difference between an "asset" and a "liability"?

• Assets are what you have, liabilities are what you owe.

• There is no difference.

• Assets are more expensive liabilities.

• Liabilities are what you have, Assets are what you owe.

How can you find someone's net worth?

• assets x liabilities

• assets + liabilities

• assets - liabilities

• liabilities - assets

What happens when you use a credit card?

• You get free money.

• You take on a debt that you will pay back later. (with interest)

• You take on a debt that you will pay back later. (without interest)

• You go directly to jail.

What is a spending plan?

• A plan to get more stretching into your daily routine.

• A plan to save all of your money and never spend any of it.

• A plan you create when you need to spend as much money as possible.

• A budget you create to save more money and meet your financial goals.

What is the difference between "income" and "expenses"?

• income is money coming in, an expense is money going out.

• an expense is money coming in, income is money going out.

• an expense is how much money you earn in a year, income is how much money you earn in a month.

• income is how much money you earn in a year, an expense is how much money you earn in a month.

Which of these is NOT an expense?

• Food

• Rent

• Clothes

• Paycheck

Which of these is a want and not a need?

• Food

• Iphone 16

• Water

• Shelter

Which of these is an unexpected expense?

• Rent

• Phone Bill

• Grocery Bill

• Car repair Bill (after an accident)

What is the difference between a "chequing" account and a "savings" account?

• savings accounts provide easy access to your money to pay bills an write cheques, cheaquing accounts offer higher interest for saving money but are harder to access.

• chequing accounts let you buy things like video games and houses, savings accounts just collect all of your debt so you can pay it off later.

• chequing accounts provide easy access to your money to pay bills an write cheques, savings accounts offer higher interest for saving money but are harder to access.

• savings accounts let you buy things like video games and houses, chequing accounts just collect all of your debt so you can pay it off later.

Which of these places can you NOT take out a loan?

• Bank

• A Credit Union

• Money Marts

• Crowdfunding