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Personal Finance pgs. 1-4 (1-14)

Total questions: 13

Worksheet time: 3hrs 15mins

Name
Class
Date
1.

Why do households sell their labor to businesses?

a)

They receive income in exchange for labor.

b)

They receive tax money in exchange for labor.

c)

They receive small business loans in exchange for labor.

d)

They receive government services in exchange for labor.

2.

Which of the following is one role of the household sector of an economy?

a)

to collect taxes

b)

to pay interest

c)

to provide goods

d)

to consume services

3.

Which of the following BEST completes the flowchart?

a)

Taxes

b)

Goods

c)

Services

d)

Resources

4.

Which of the following BEST describes the business sector of the U.S. economy?

a)

The business sector creates wants and needs.

b)

The business sector is financed by the government.

c)

The business sector supplies labor to resource markets.

d)

The business sector produces goods and provides services.

5.

Which of the four sectors of the U.S. economy is formed by profit-seeking entrepreneurs who use resources to produce goods and services to sell?

a)

banks

b)

households

c)

government

d)

private businesses

6.

Which of the four major sectors in the US economy provides checking accounts, savings accounts, and loans?

a)

banks

b)

households

c)

government

d)

private businesses

7.

Which of the following BEST explains what should Jayla expect by taking a loan from her bank?

a)

to have to pay her employees their monthly salaries

b)

to repay the bank based on the amount of the loan plus interest

c)

to receive money from her employees to help her repay the loan

d)

to be so successful that she will be able to repay the loan in full right away

8.

Which of the following is the BEST title for the list?

a)

Benefits of bank loans

b)

Benefits of a debit card

c)

Benefits of savings accounts

d)

Benefits of checking accounts

9.

How do banks in the United States make MOST of their money?


a)

taking customers’ property

b)

investing in the stock market

c)

selling houses that they buy from customers

d)

loaning money to individuals and businesses

10.

What is one benefit of depositing your money into a savings account versus a checking account?

a)

to earn the most money on the deposit to use the money

b)

to pay monthly bills and expenses

c)

to make sure the bank has enough cash to cover their deposit

d)

to make sure they pay the lowest possible tax rate on the deposit

11.

Which of the following would be the BEST decision to meet Sammy’s needs?


a)

deposit all $2,000 into a savings account

b)

deposit all $2,000 into a checking account

c)

deposit $1,500 in a checking account and $500 in a savings account

d)

deposit $1,500 in a savings account and $500 in a checking account

12.

Why do banks loan money to households and businesses?


a)

because the government pays banks for providing the loans

b)

because banks earn a profit by charging interest on the loans

c)

because banks are publicly funded and provide public services

d)

because the loans are used to buy goods produced by the banks

13.

Why do cities use tax dollars to fund services such as garbage removal?

a)

because private companies do not want the work

b)

because the services are necessary for a healthy society

c)

because public taxes are limitless and must be used correctly

d)

because the services provide jobs for people in the community