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Unit 7 Review

Total questions: 29

Worksheet time: 17mins

Name
Class
Date
1.

What makes a savings account a better investment than a checking account?

a)

They earn interest

b)

They are in a bank

c)

you can have more than one person on the account

d)

they are more secure

2.

With which type of account is a minimum balance fee associated?

a)

Savings Account

b)

Checking Account

c)

Credit card

d)

Home loan

3.

With which type of account is an annual fee associated?

a)

Savings Account

b)

Checking Account

c)

Credit Card

d)

Home Loan

4.

With which type of account is a mortgage payment associated?

a)

Mortgage

b)

Credit Card

c)

Bank Fees

d)

Renters Insurance

5.

What is the main reason to use a personal budget?

a)

To use technology

b)

To stay out of debt

c)

To learn what to borrow money for

d)

to use excel

6.

Which step in the budget-making process is the best way to offset an unexpected financial obligation?

a)

To alphabetize your expenses

b)

Writing down ONLY your monthly expenses

c)

Reduce expenses in flexible categories

d)

See all of your income

7.

Which of these is an example of a fixed expense?

a)

travel

b)

entertainment

c)

education

d)

rent

8.

What is a budget?

a)

A type of savings account

b)

A way to invest for retirement

c)

A fund for emergencies

d)

A financial plan that defines expenses for a period of time.

9.

What is an emergency fund?

a)

A savings account set aside for unexpected situations.

b)

A way to invest for retirement.

c)

Something most people don't need, because emergencies are rare.

d)

An investment account that can grow over time.

10.

What is income?

a)

The amount you spend

b)

The amount you don't save

c)

Money taken in

11.
the work a person does
a)
labor
b)
income
c)
salary
d)
resources
12.
money earned
a)
salary
b)
income
c)
purchase
d)
spend
13.

What is meant by money being ACCESSIBLE? (select all that apply)

a)

Anyone can get it easily

b)

The owner can get it quickly

c)

It takes a long time to get the money

d)

The owner can get it easily

14.

What is debt?

a)

Money you have borrowed and need to pay back

b)

Money you make from working at a job

c)

Money you make from the government

d)

Taxes that you pay when you buy something

15.

What is insurance?

a)

A service purchased to protect assets and income against financial loss.

b)

A type of savings account where you put aside money for emergencies.

c)

A type of investment account where you can buy shares of stock.

d)

A kind of taxes charged by the government.

16.
to give money to someone else in exchange for something
a)
interest
b)
lend
c)
spend
d)
borrow
17.
another person gives you money that you will then need to pay back
a)
borrow
b)
purchase
c)
scarce
d)
labor
18.
to obtain by paying money for an item or a service
a)
income
b)
purchase
c)
saving
d)
salary
19.
to let someone else use your money and they will need to pay you back
a)
human capital
b)
borrow
c)
lend
d)
interest
20.
paying for something with money that is borrowed and must be paid back, usually with interest
a)
credit
b)
income
c)
resources
d)
salary
21.
to give your money to a charity or worthy cause
a)
loan
b)
donate
c)
tax
d)
spending goal
22.
a required contribution to the state and federal government
a)
tax
b)
donate
c)
spend
d)
loan
23.
The cost of borrowed money, usually expressed as a percentage.
a)
interest
b)
savings plan
c)
scarce
d)
purchase
24.
This term refers to the original amount of a loan OR the original amount of money invested. 
a)
Principal
b)
Interest
c)
Rebate
d)
Fixed Rate
25.

What is a credit score?

a)

a three-digit score that tells lenders how much money you make each year.

b)

A five-digit numerical rating that reflects how likely you are to repay your debt.

c)

A three-digit numerical rating that reflects how likely you are to repay your debt.

d)

A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts

26.
Which of the following is true about using a credit card?
a)
It's the same as using cash.
b)
When you use a credit card, one spends less
c)
When you use a credit card, one spends more
d)
Studies show it registers as pain
27.
What is the best way to buy a car?
a)
O% interest for 36 months on new or used
b)
Leasing
c)
Purchasing new at the end of the year
d)
purchase used and pay cash
28.
The key to building wealth is
a)
drive reliable used cars
b)
get excellent interest rates
c)
get a good education and income
d)
to stay debt free
29.
The main difference between a credit card and debit card is
a)
A debit card requires that you have the cash available in the account; a credit card doesn't
b)
A credit card has the Visa or MasterCard logo; a debit card doesn’t
c)
A debit card does not offer the same protections as a credit card.
d)
A credit card requires that you have the cash available in the account, a debit card doesn't