Understanding Money and Transactions

Which of the following is a method of payment that can be used to purchase goods and services?

• Bartering

• Credit card

• Borrowing from a friend

• Asking for a gift

Answer explanation

A credit card is a widely accepted method of payment that allows consumers to purchase goods and services on credit. Bartering, borrowing, and asking for gifts do not constitute standard payment methods.

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ONTARIO.MATH.4.F1.1

If you buy 3 items priced at $5 each, what is the total cost?

• $10

• $15

• $20

• $25

Answer explanation

To find the total cost, multiply the number of items (3) by the price per item ($5). So, 3 x $5 = $15. Therefore, the total cost is $15.

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ONTARIO.MATH.4.F1.2

Which of the following is an example of saving?

• Spending all your allowance on toys

• Putting money in a piggy bank

• Buying a new video game

• Donating to charity

Answer explanation

Putting money in a piggy bank is an example of saving because it involves setting aside money for future use, unlike spending on toys or video games, or donating, which do not contribute to saving.

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ONTARIO.MATH.4.F1.3

How might spending and saving behaviours differ between two people?

• Everyone saves the same amount

• Some people prefer to save more, while others prefer to spend more

• Everyone spends all their money

• No one saves money

Answer explanation

Spending and saving behaviors vary among individuals. Some prioritize saving for future needs, while others may focus on enjoying their money now, leading to different financial habits.

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ONTARIO.MATH.4.F1.4

Which of the following is a way to determine if something is reasonably priced?

• Buying it because it's expensive

• Comparing prices with similar items

• Purchasing without checking the price

• Buying it because it's cheap

Answer explanation

Comparing prices with similar items helps assess if a price is reasonable, as it provides context and benchmarks. The other options do not involve any evaluation of value.

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ONTARIO.MATH.4.F1.5

Which method of payment involves using a card linked directly to your bank account?

• Cash

• Debit card

• Credit card

• Cheque

Answer explanation

A debit card is directly linked to your bank account, allowing you to spend money you have. Unlike credit cards, which borrow funds, debit cards withdraw directly from your available balance.

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ONTARIO.MATH.4.F1.1

• $4

• $5

• $6

• $7

Answer explanation

To find the change, subtract the cost of items from the amount paid: 20 - 14 = 6. Therefore, the correct change you should receive is $6.

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ONTARIO.MATH.4.F1.2

What is an example of earning money?

• Receiving a gift

• Doing chores for an allowance

• Finding money on the street

• Winning a lottery

Answer explanation

Doing chores for an allowance is a clear example of earning money, as it involves performing tasks in exchange for payment. The other options do not involve a direct effort to earn money.

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ONTARIO.MATH.4.F1.3

Why is it important to save money?

• To spend it all at once

• To have funds for future needs or emergencies

• To show off to friends

• To avoid spending on necessities

Answer explanation

Saving money is crucial to ensure you have funds available for future needs or emergencies, allowing you to handle unexpected expenses without financial stress.

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ONTARIO.MATH.4.F1.4

Which of the following indicates a good purchase?

• The item is on sale but still more expensive than similar items

• The item is reasonably priced compared to similar items

• The item is the most expensive option available

• The item is the cheapest but of poor quality

Answer explanation

The correct choice indicates a good purchase because it suggests the item is fairly priced compared to similar options, ensuring value for money without compromising quality.

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ONTARIO.MATH.4.F1.5