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WorksheetsPersonal Finance 3
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
You need to purchase a pair of sneakers since they are required for physical education class. Which of the following is an example of effective decision making?
a)
You buy a pair of sneakers after considering fit, appearance, and cost.
b)
You buy the first pair of sneakers you try on at the first store you visit.
c)
You use your money to buy a pair of jeans instead of a pair of sneakers.
d)
You buy the most stylish and expensive pair of sneakers you find.
2.
Which economic term best describes using money to earn more money?
a)
borrowing
b)
investing
c)
selling
d)
trading
3.
A disadvantage of a revolving credit account is that
a)
balances can rise quickly if only the minimum payment is made each month.
b)
it is illegal.
c)
it is very difficult for borrowers to qualify for such an account.
d)
the balance must be paid off every month.
4.
Which of the following is the best definition for saving?
a)
the discount received from buying something on sale
b)
putting your money under your mattress
c)
disposable income minus consumption spending
d)
the interest paid on a savings account
5.
Making purchases on credit
a)
is never a good idea.
b)
decreases the cost of the purchase to the borrower.
c)
is a good idea if the purchaser has so many credit payments that he or she is unable to live comfortably.
d)
is a good idea if the benefits to the purchaser are greater than the costs.
6.
When is the best time to borrow money?
a)
when a person has a poor credit rating
b)
when the interests rates are low
c)
when a person has no job or steady income
d)
when a person wants to purchase the expensive item, like a new cell phone
7.
Which is the most diversified investment?
a)
bank savings account
b)
stock in Coca-Cola
c)
municipal bond
d)
Vanguard mutual fund
8.
Which of the following allows people to increase their income?
a)
arguing with a boss
b)
applying for a credit card
c)
receiving more training
d)
opening a checking account
9.
Which form of payment is the most expensive for the buyer?
a)
credit card
b)
debit card
c)
cash
d)
check
10.
Which of the following is NOT an example of credit?
a)
credit card
b)
debit card
c)
home loan
d)
student loan
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