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Transitions Semester Test Study Guide

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

When you must give something up in order to get something else, it is called _____.

a)

a sound investment

b)

b. an opportunity cost

c)

c. a lost opportunity

d)

d. a limited means

2.

If you have limited means you may need to prioritize. This could mean crossing video games off your shopping list and replacing them with _____.

a)

a. groceries

b)

b. movie tickets

c)

c. designer jeans

d)

d. new sneakers

3.

Tracking your spending can help you _____.

a)

a. spend more money

b)

b. make good decisions

c)

c. know where your money is being spent

d)

d. spend less money

4.

Cutting back on expenses can help you save money, which will _____.

a)

a. help you afford nicer things

b)

b. add up fast and help you save for your goal

c)

c. help you spend more money

d)

d. help you choose the right investments

5.

A job is something you do to earn money. A career is ____?

a)

a. a single job you have once

b)

b. the kind of job most people have

c)

c. the type of job you do for a long time

d)

d. the way you save money

6.

If someone likes animals and then becomes a zookeeper, they have chosen a career based on _____.

a)

a. income

b)

b. skills

c)

c. interests

d)

d. abilities

7.

Why is a credit card a type of debt?

a)

a. Credit cards are only used in stores and not between friends.

b)

b. Credit card companies charge a small fee to use them.

c)

c. Using a credit card is borrowing money that needs to be paid back later.

d)

d. Using a credit card allows you to earn points and rewards.

8.

You should not use a credit card when _____.

a)

a. you want something now that you will never be able to afford

b)

b. you need something now but can’t pay for it yet

c)

c. you have made a monthly budget

d)

d. you have just started a new job

9.

How can insurance help with meeting savings goals?

a)

a. Insurance companies can quickly use your savings to pay for emergencies.

b)

b. You can have a savings account with an insurance company.

c)

c. Insurance pays for some costs of an emergency so you can keep your savings.

d)

d. Financial institutions give higher interest rates for people who have insurance

10.

How are simple interest and compound interest different?

a)

a. Compound interest is like having more cash, but simple interest is like having more debt

b)

b. Simple interest is like having more cash, but compound interest is like having more debt

c)

c. Compound interest stays the same over time, but simple interest grows.

d)

d. Simple interest stays the same over time, but compound interest grows.