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Personal Finance Ch. 1

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

Expensive houses and new cars are a true indication of wealth.

a)

True

b)

False

2.

A person or organization that uses a product or service.

a)

borrower

b)

debtor

c)

consumer

d)

creditor

3.

An obligation of repayment owed by one party to a second party.

a)

debt

b)

ownership

c)

rental

d)

credit

4.

A fee paid by a borrower to the lender for the use of borrowed money.

a)

bills

b)

debts

c)

interest

d)

principal

5.

Which of the following things cannot be done with a debit card but can be done with a credit card?

a)

Go in to debt

b)

Rent a car

c)

Purchase something online

d)

Purchase an airline ticket

6.

What is a liability?

a)

Money you owe; a debt

b)

Something that loses value over time

c)

Money in your savings account

d)

Something you own and has value

7.

The measurement of a person's total dollar value of assets minus any liabilities they have is called their ___________

a)

Liabilities

b)

Insurance

c)

Wealth

d)

Net Worth

8.

A spending plan is called ______________

a)

Scarcity

b)

Debt

c)

an account

d)

a budget

9.

The condition of having unlimited wants but limited resources is called

a)

economy

b)

scarcity

c)

global demand

d)

selfishness

10.

All financial decisions an individual or family must make in order to earn, budget, save, and spend money over time is known as

a)

financial aid

b)

cash flow

c)

personal finance

d)

investments

11.

An investment is

a)

money put into an account intended for growth

b)

money spent

c)

a savings account at the bank

d)

interest paid on an item

12.

The cost of goods and services:

a)

an expense

b)

a budget

c)

net worth

d)

scarcity

e)

asset

13.

Compound interest is

a)

money put into an account for growth

b)

anything owed

c)

interest paid on the principal investment

d)

interest paid on the investment PLUS any interest previously earned

14.

(a)   interest is the interest paid on the principal investment ONLY

15.

True or False: a non-profit organization is a federally recognized, tax-exempt organization such as a church, hospital, charity or school that serves the public in some way

a)

true

b)

false

16.

Interest is a (a)   paid on top of what you already owe

17.

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

a)

50, 50

b)

30, 70

c)

80, 20

d)

25, 75

18.

1. The First Foundation is:

a)

Open a checking account

b)

Build up a $500 savings

c)

Pay cash for a car

d)

Get out of all debt

19.

Which of the following would be a good reason to use money out of your emergency fund?

a)

I need new tired for my car after my tires blew

b)

I need a beach vacation

c)

I need some jeans because I have had mine since last Fall.

d)

My nails are hideous and I need to get a manicure ASAP!

20.

Which would be a tool you could use to help you balance your budget?

a)

a spreadsheet

b)

a banking app

c)

a calculator

d)

all of these