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Finance Unit 2 Test Review - Budgeting

Total questions: 31

Worksheet time: 16mins

Name
Class
Date
1.

What should be the first thing you consider when making a budget?

a)

Fixed Expenses

b)

Variable Expenses

c)

PYF (Pay Yourself First)

d)

Income

2.

What is the amount of something left over when requirements have been met called?

a)

surplus

b)

deficit

c)

expense

d)

income

3.

What is the loss of potential gain from other alternatives when one alternative is chosen called?

a)

surplus

b)

opportunity cost

c)

deficit

d)

trade off

4.

What is a balance achieved between two desirable but incomparable features called?

a)

opportunity cost

b)

budget

c)

surplus

d)

trade off

5.

What is an estimate of income and expenditures for a set period of time?

a)

income

b)

opportunity cost

c)

budget

d)

surplus

6.

What is an amount by which something, especially money, is too small called?

a)

deficit

b)

surplus

c)

income

d)

expense

7.

Which does a budget not include?

a)

fixed expenses

b)

variable expenses

c)

income

d)

unanticipated expenses

8.

Which is an example of something you would spend disposable income on?

a)

Red Robin

b)

Adventure Park

c)

rent

d)

movie tickets

9.

Which is a tax advantaged investment vehicle in the US designed to encourage savings for the future higher education expenses of a designated beneficiary?

a)

grant

b)

529 plan

c)

scholarship

d)

student loan

10.

Which is a grant or payment made to support a student's education, awarded on the basis of academic or other achievement?

a)

grant

b)

529 plan

c)

scholarship

d)

student loan

11.

Which is designed to help students pay for university tuition, books and living expenses and must be re-paid?

a)

grant

b)

529 plan

c)

scholarship

d)

student loan

12.

Which is a sum of money given by an organization, especially a government, for a particular purpose?

a)

grant

b)

529 plan

c)

scholarship

d)

student loan

13.

What do you call the concept of saving for the future by putting money aside before paying regular bills?

a)

grant

b)

budgeting

c)

PYF

d)

scholarship

14.

The three R's when budgeting are reality, restraint, and realistic.

a)

true

b)

false

15.

Which is not a factor that would affect your budget after it is created?

a)

Acts of God

b)

Inflation

c)

Windfall income

d)

Unemployment

16.

Banks never waive the fees for your checking account because you have direct deposit.

a)

True

b)

False

17.

What is a direct deposit?

a)

An electronic transfer from one account to another

b)

When you take your check to the bank and deposit it into your checking account

c)

When you take money out of your account using a debit card

d)

An electronic fund deposited directly into your bank account from your employer

18.

Disposable income is the money you have left after taxes are taken out of your paycheck before paying your expenses.

a)

True

b)

False

19.

A short term goal is a goal made to be accomplished in 1 or more years.

a)

True

b)

False

20.

Which is an example of unanticipated income?

a)

your electric bill goes up and you have to spend more money than expected

b)

you receive a check for overpaying a bill you didn't know you made

c)

your paycheck

d)

your house payment

21.

Fixed expenses are expenses that stay the same each month like rent. Variable expenses are expenses that change like groceries.

a)

True

b)

False

22.

Which is an example of an opportunity cost?

a)

Choosing to work full time or to go to college full time next year

b)

Choosing to work part time and go to college part time next year

c)

Choosing to go to dinner with your friends

d)

Choosing to clean the house before Thanksgiving

23.

Which of the following is a want?

a)

studying for a test

b)

going to a concert

c)

going to work

d)

going to school

24.

What is a debt instrument secured by collateral of a specific property?

a)

credit card

b)

checking account

c)

mortgage

d)

CD

25.

SMART stands for specific, measurable, actionable, realistic, time-based.

a)

True

b)

False

26.

A deficit is an amount of something left over when requirements have been met.

a)

True

b)

False

27.

What is something you would do at a bank?

a)

Open a savings account

b)

Purchase groceries

c)

Play video games

d)

Sit down for dinner

28.

Which is a question you would ask when opening a savings account?

a)

Whats for dinner?

b)

Are we there yet?

c)

How much do I owe for this purchase?

d)

Are there any benefits and fees?

29.

How many months of income should you have saved as an emergency fund?

a)

3 - 6 months

b)

9 - 12 months

c)

1 - 2 months

d)

0 months

30.

Which of the following has an early withdraw fee?

a)

Savings account

b)

CD (Certificate of Deposit)

c)

Checking account

31.

Which can help you pay for college?

a)

529 plan, scholarship, grant

b)

scholarship, grant, credit card

c)

Credit card, 529 plan, grant

d)

Scholarship, credit card, grant