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Unit 4 Questions

Total questions: 25

Worksheet time: 2hrs 5mins

Name
Class
Date
1.

Borrowing money to buy something and promising to pay it back later is called

a)

Banking

b)

Credit

c)

Taxes

d)

None of these

2.

A credit score is

a)

how well you pay off your credit and other bills

b)

how much money you have in the bank

c)

how much you need to pay in taxes

d)

how well other people pay you

3.

Why do you want to have good credit?

a)

lower interest rates

b)

more credit

c)

Both of these

d)

Neither of these

4.

If you pay your bills on time and don't carry much debt, your credit score goes

a)

Up

b)

Down

5.

If you don't pay your bills on time and buy too much with a credit card, your credit score goes

a)

Up

b)

Down

6.

True or False: You don't have to pay back money you spend on a credit card

a)

True

b)

False

7.

True or False: Credit cards and debit cards are the same

a)

True

b)

False

8.

You want to purchase a new vehicle and you have your heart set on a brand new SUV. You take out a loan to pay for the car, but after six months you begin to fall behind on payments and incur late fees. Because of this your credit score goes

a)

Up

b)

Down

9.

Your first semester of college, you take out a small loan to help pay for books. Despite being busy, you get a part time job. Although you don’t have to pay your loan back until you graduate, you’ve saved enough by the end of the semester and you will pay off the loan in full. Because of this your credit score goes

a)

Up

b)

Down

10.

What are the three different types of banks?

a)

Commercial; Debit; Credit

b)

Commercial; Savings and Loans; Credit Union

c)

Commercial; Credit Union; ATM Card

d)

Chase Bank; PNC Bank; TCF Bank

11.

Mike buys a used car at a dealership. He writes a check for $8,000 to pay for it. Mike is using what kind of bank account?

a)

Savings Account

b)

Certificate of Deposit

c)

Money Market Account

d)

Checking Account

12.

Hadeel wants to put her money in the bank and earn interest. What kind of account should she use?

a)

Checking Account

b)

Money Market Account

c)

Savings Account

d)

None of these

13.

Mr. Conte goes to the bank and deposits $1000 and promises he will not use any of the money for a year. This is what kind of bank account?

a)

Checking Account

b)

Savings Account

c)

Certificate of Deposit

d)

Money Market Account

14.

Sarah goes to the bank and asks them to put her money into an account where the bank will invest the money in the market. What kind of account does she want?

a)

Savings Account

b)

Checking Account

c)

Money Market Account

d)

Certificate of Deposit

15.

Why do banks pay interest?

a)

It's a payment by the bank for letting them use your money

b)

Banks use the money to give other people loans

c)

Both of these

d)

None of these

16.

Which of these is NOT something taxes are used to pay for?

a)

Schools

b)

Police

c)

Defense

d)

Vacations

17.

What are the 3 forms of taxes?

a)

Progressive, Regressive, Flogressive

b)

Progressive, Regressive, Proportional

c)

Flat, Round, Square

d)

None of these

18.

The income tax is an example of this kind of tax

a)

Progressive

b)

Regressive

c)

Proportional

d)

None of these

19.

When Yahya goes to the store and buys a t-shirt, he has to pay an extra sales tax. The sales tax is what kind of tax?

a)

Progressive

b)

Regressive

c)

Proportional

d)

None of these

20.

A tax that's the same for everyone no matter how much you make is called what?

a)

Progressive

b)

Regressive

c)

Proportional

d)

None of these

21.

What type of tax do you pay when you own a home?

a)

Income tax

b)

Property tax

c)

Sales Tax

d)

Social Security tax

22.

What type of tax do you pay when you buy something at the store?

a)

Income tax

b)

Property tax

c)

Sales Tax

d)

Social Security tax

23.

What type of tax takes a percentage of the money you make on a job?

a)

Income tax

b)

Property tax

c)

Sales Tax

d)

Social Security tax

24.

What type of tax goes to help pay for retirement?

a)

Income tax

b)

Property tax

c)

Sales Tax

d)

Social Security tax

25.

What is the name of the agency that collects taxes in the United States?

a)

Secret Service

b)

Federal Bureau of Investigation

c)

Internal Revenue Service

d)

Department of Energy