The difference between earned and unearned income is:

• Earned income is money received from working, while unearned income is money received from sources other than work.

• Earned income is money received from investments, while unearned income is money received from a job.

• Earned income is always higher than unearned income.

• There is no difference between earned and unearned income.

The difference between gross and net income is:

• Gross income is after deductions, net income is before deductions.

• Gross income is before deductions, net income is after deductions.

• Gross income and net income are the same.

• Gross income is only for businesses, net income is only for individuals.

The effect of inflation is:

• Increase in the value of money

• Decrease in the value of money

• No change in the value of money

• Increase in production

FDIC or NCUA insurance covers:

• Stocks and bonds

• Mutual funds

• Deposits in banks or credit unions

• Life insurance policies

The difference between a checking and savings account is:

• Checking accounts are mainly for daily transactions, while savings accounts are for saving money and earning interest.

• Savings accounts are used for daily spending, while checking accounts are for long-term savings.

• Both accounts are only for business use.

• There is no difference between checking and savings accounts.

A Certificate of Deposit (CD) is:

• a type of savings account with a fixed interest rate and maturity date

• a form of credit card

• an insurance policy

• a type of loan

The components of a budget are:

• Income and expenses

• Only income

• Only expenses

• Assets and liabilities

An emergency fund is:

• Money set aside for unexpected expenses or emergencies.

• Money used for daily expenses.

• Funds invested in the stock market.

• A loan taken from a bank.

Recordkeeping is important because:

• It helps maintain accurate information and supports decision-making.

• It is a fun activity.

• It is required only for entertainment purposes.

• It is not necessary in any organization.

The difference between installment loans and revolving credit is:

• Installment loans are paid in fixed payments over time, while revolving credit allows borrowing up to a limit and repaying repeatedly.

• Installment loans have variable payments, while revolving credit has fixed payments.

• Both are paid in one lump sum.

• Installment loans and revolving credit are the same.