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Personal Finance - Unit 1 Review

Total questions: 25

Worksheet time: 25mins

Name
Class
Date
1.

A branch of the U.S. Treasury Department, the _____________ makes coin currency.

a)

U.S. Mint

b)

U.S. Treasury Department

c)

Internal Revenue Service (IRS)

d)

U.S. Money Printers

2.

Eva decided to take a Marketing class instead of an Art class. The art class is known as her ______________. The choice given, up also called the next best thing.

a)

opportunity cost

b)

supply

c)

demand

d)

surplus

3.

The amount of a product people are willing to buy at a certain price is known as _____.

a)

supply

b)

demand

c)

opportunity costs

d)

fixed expenses

4.

Some monthly expenses change in dollar amount based on usage, which means that they are ___________ expenses. For example, food, gas, electricity.

a)

fixed

b)

exempt

c)

questionable

d)

variable

5.

The total amount of a specific good or service that is available to consumers:

a)

demand

b)

supply

c)

surplus

d)

deficit

6.

If your budget shows that you spent more money than you have received, you have a(n):

a)

deficit

b)

surplus

c)

shortfall

d)

variable expenses

7.

This agency of the federal government (has three branches) is responsible for issuing ALL of the U.S. currency and bills:

a)

U.S. Mint

b)

U.S. Treasury Department

c)

U.S. Federal Reserve

d)

U.S. Money Machine

8.

Exchanging goods or services for other goods or services, without using money is known as _________:

a)

needs

b)

wants

c)

barter

d)

supply

9.

Hada used his __________ to buy pizza for dinner. This payment method takes money directly from his bank account:

a)

gift card

b)

cash card

c)

credit card

d)

debit card

10.

Currency that is legal tender but not backed by gold is known as ____________:

a)

social security

b)

fixed money

c)

budget

d)

fiat money

11.

An expense that stays the same month-to-month and does not depend on usage is known as ___________ expenses. Example, rent and student loan payment.

a)

fixed

b)

constant

c)

variable

d)

permanent

12.

A __________ is an estimate of your income and your expenses for a period of time:

a)

money plan

b)

fixed plan

c)

budget

d)

debit plan

13.

Sahil paid all of his necessary expenses for the month such as food, clothing and shelter. The money he has left over for spending is known as ______________.

a)

earned

b)

disposable or discretionary income

c)

budget

d)

savings

14.

Ms. Seboka used her ___________ to pay for her groceries. With this payment method she is borrowing money from a bank and must repay it with interest.

a)

credit card

b)

debit card

c)

cash card

d)

gift card

15.

If you received more money than you have spent, you have a(n):

a)

deficit

b)

surplus

c)

shortfall

d)

variable expense

16.

An example of a fixed expense is:

a)

entertainment

b)

apartment rent

c)

restaurants

d)

vacation

17.

Goals:

a)

Need to be realistic, have a target date, and, if possible, an associated cost

b)

Remain the same year after year, throughout life

c)

Need to reflect current income

d)

Are generally the same for middle class families

18.

When money is not used and goods and services are exchanged for other goods and services, this system is called:

a)

Credit

b)

Money

c)

Barter

d)

Checks

19.

Which of the following statements is usually true about individuals who are financially literate?

a)

They have high debt and low savings

b)

They understand the basics of personal finance and money management

c)

They almost always choose stocks and bonds that increase in value

d)

They achieve all of their financial goals

20.

The following is usually considered a variable expense:

a)

mortgage payment

b)

electric bill payment

c)

rent payment

d)

car payment

21.

You want to gain control over your income and spending so that you will be able to save money. Which step will help you the most?

a)

developing a retirement plan

b)

developing a budget

c)

getting advice from a friend

d)

applying for a loan

22.

A cash card generally: (ex. Visa Gift Card)

a)

Can be used in the same way that someone uses a check to pay bills by mail

b)

Is purchased with a specific amount of money that can be used to pay for goods or services

c)

Is the same as a credit card which means you can use it to pay the minimum on a bill

d)

Is the same as a debit card and is always linked to a specific checking account

23.

Something you are working to achieve within a defined period of time is a(an):

a)

value

b)

ideal

c)

goal

d)

dream

24.

Purchases made with your debit card are usually:

a)

Deducted immediately from your checking account

b)

Deducted from your credit card balance

c)

Added to your credit card balance

d)

Put on your credit card bill as a cash advance

25.

Financial plans need to:

a)

include income but not expenses

b)

be changed during different stages in life

c)

include income and eliminate risk

d)

to be approved by an accountant