Money Assessment

What is one function of money?

• To replace bartering entirely

• To be used only by banks

• To serve as a medium of exchange

• To provide unlimited wealth

Which of the following is an example of a modern form of money?

• Salt

• Gold coins

• Cryptocurrency

• Livestock

What is the main purpose of a budget?

• To earn more money

• To avoid paying taxes

• To plan how to spend and save money

• To spend all your income quickly

Which of the following is an example of a fixed expense?

• Groceries

• Phone bill

• Gasoline

• Eating out

What should you do first when creating a budget?

• Spend your money on wants

• Calculate your income

• Apply for a loan

• Buy gifts for friends

6. A _______ expense is one that stays the same each month, like rent or a car payment.

• fixed

• variable

• occasional

• unexpected

7. A _______ is a financial plan that tracks income and expenses.

• budget

• receipt

• invoice

• contract

Label each item as (F) Fixed, (V) Variable, or (D) Discretionary: Rent _______

• F (Fixed)

• V (Variable)

• D (Discretionary)

• N (Nonrecurring)

Label each item as (F) Fixed, (V) Variable, or (D) Discretionary: Movie tickets _______

• D (Discretionary)

• F (Fixed)

• V (Variable)

• N (Necessary)

Label each item as (F) Fixed, (V) Variable, or (D) Discretionary: Cell phone bill _______

• F (Fixed)

• V (Variable)

• D (Discretionary)

• N (None of the above)