Financial Hygiene and Economy Quiz

Match the definition in Column A with the term in Column B.

• Fraud

• Stealing someone's personal information.

• Budget

• The use of someone's information to commit crimes.

• Identity Theft

• Spending more money than you make.

• Positive Cash Flow

• Plan for your monthly income.

• Negative Cash Flow

• Earning more money than you spend.

Why is financial hygiene important?

• It will prevent unexpected circumstances.

• It will help you maintain your budget.

• It will keep you physically fit.

• It will help you bring in more income.

Why is negative cash flow undesirable?

• It could lead you into debt.

• It could increase your personal wealth.

• It could help you recognize fraud in your account.

• It could improve your personal budget.

How can you prevent identity theft from happening?

• Print out your credit report

• Place your bills on auto-pay

• Check your accounts frequently

• Organize your receipts

Which practice is essential for maintaining good financial hygiene and protecting against financial risks?

• Frequently changing bank accounts

• Investing in a single stock

• Reviewing and updating financial records

• Using credit cards to track spending

What are some expenses could be considered non-essential if you needed to fix your budget?

• Coffee, Groceries, Dining Out

• Rent, Gym, Utilities

• Coffee, Gym, Dining Out

• Clothing, Cell Phone, Groceries

Match the definition in Column A with the term in Column B.

• Consumer

• Supply and demand set prices and production

• Producer

• Government owns and controls production

• Business Cycle

• Economic pattern of expansion and contraction

• Market-Based Economy

• One who purchases goods within an economy

• Command-Based Economy

• One who sells goods within an economy

What is one consequence for consumers when a long economic contraction occurs?

• Consumers spend more money.

• Consumers spend less money.

• Consumers spend the same amount of money.

• Economic contraction has no long-term effects.

How long does an economy contract before it is officially in a recession?

• Three months

• Four months

• Five months

• Six months

What would be the initial result of high demand in a market-based economy?

• As profit increases, prices rise.

• As profit decreases, prices drop.

• As profit increases, prices drop.

• As profit decreases, prices rise.