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Chapter 1 Review

Total questions: 19

Worksheet time: 12mins

Name
Class
Date
1.

Refers to all the money decisions a person or family must make in order to earn, budget, save, and spend money.

a)

Cash flow statement

b)

financial aid

c)

personal finance

d)

scarcity

2.

Personal finance is about _______% behavior and _______% knowledge.

a)

80,20

b)

60,40

c)

20,80

d)

70,30

3.

A measurement of the total dollar value of a person’s or business’ assets minus liabilities is called:

a)

wealth

b)

net worth

c)

earnings

d)

income

4.

A liability can be described as:

a)

money you owe, a debt

b)

something you own that has value

c)

money that you have in a savings account

d)

something that goes down in value over time

5.

The First Foundation is:

a)

get out a debt

b)

pay cash for a car

c)

build wealth and give

d)

save a $500 emergency fund

6.

Which of the following allows invested money to grow over time?

a)

taxes

b)

compound interest

c)

simple interest

d)

inflation

7.

The condition of having unlimited wants but limited resources is known as:

a)

scarcity

b)

global demand

c)

consumerism

d)

budgeting

8.

A plan for spending

a)

budget

b)

economy

c)

checking account

d)

scarcity

9.

This is the second foundation

a)

get out of debt

b)

save $500 emergency fund

c)

pay cash for college

d)

pay cash for first car

10.

This is the third foundation

a)

pay cash for college

b)

build wealth and give

c)

save a $500 emergency fund

d)

pay cash for your first car

11.

This is the fourth foundation

a)

pay cash for your first car

b)

pay cash for college

c)

build wealth and give

d)

get out of debt

12.

This is the fifth foundation

a)

build wealth and give

b)

get out of debt

c)

save $500 emergency fund

d)

pay cash for first car

13.

Owing anything to anyone for any reason

a)

credit

b)

consumer

c)

debt

d)

expense

14.

Change in dollar amount every month

a)

discretionary expenses

b)

intermittent expenses

c)

fixed expenses

d)

variable expenses

15.

Remain the same from month to month

a)

fixed expenses

b)

discretionary expenses

c)

variable expenses

d)

intermittent expenses

16.

For things you don't necessarily need

a)

variable expenses

b)

fixed expenses

c)

intermittent expenses

d)

discretionary expenses

17.

Occur at different times throughout the year and tend to be large lump sums

a)

variable expenses

b)

fixed expenses

c)

discretionary expenses

d)

intermittent expenses

18.

A measurement of the total dollar value of one's assets minus liabilities

a)

net worth

b)

budget

c)

inflation

d)

scarcity

19.

Chad buys a car for 30,000. He has to take out a loan with a 5% interest rate for 1 year. How much with he pay in interest?

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