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Personal Finance Review

Total questions: 22

Worksheet time: 44mins

Name
Class
Date
1.
This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.
a)
compound
b)
sinking
c)
annual
2.

The cost (or fee) to borrowed money, usually expressed as a percentage.

a)
interest
b)
savings plan
c)
scarce
d)
purchase
3.
A mutual fund allows investments to be ___________.
a)
Secured
b)
Guaranteed
c)
Diversified
d)
Minimal
4.
This term refers to the original amount of a loan OR the original amount of money invested. 
a)
Principal
b)
Interest
c)
Rebate
d)
Fixed Rate
5.
Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or the addition of interest). 
a)
Savings
b)
Profit
c)
Budgeting
d)

Debt (Credit)

6.

What is a budget?

a)

A plan for how money will not be used

b)

A plan for how money will be used

c)

The amount you spend

d)

The amount you save

7.

What are stocks?

a)

sharing something

b)

A small ownership share in a company

c)

A graph with pointy arrows that are red and green

8.

What is financial investment?

a)

putting money into things like stocks and retirement accounts as a way to make money in the future

b)

Putting things into physical things

c)

The first Amendment

9.
Everyone makes choices about how to manage his or her money/income from a job. This is also known as what?
a)
Personal Finance
b)
Government
c)
Civics
d)
Geography
10.
Money that you make from your job is known as what?
a)
Income
b)
Credit
c)
Supply
d)
Demand
11.
What is the difference between needs and wants?
a)
needs=other things
wants=survival
b)
needs=survival 
wants=other things
12.

A plan for making and spending your money wisely

a)

Balance

b)

Budget

c)

Bankruptcy

d)

Salary

13.

Money taken from your income and paid to the government to help your community or country

a)

Taxes

b)

Expenses

c)

Wages

d)

Income

14.

The money paid to an insurance company to purchase a policy

a)

Premium

b)

Policy

c)

Insurance

d)

Risk

e)

Deductible

15.

Which is the correct type of insurance that would be used: Sally is not feeling well so her mother takes her to the doctor. The doctor tells her she has strep throat, gives her medication, and sends her home to recover. What type of insurance would be used in this case?

a)

Property and liability

b)

Health

c)

Life

d)

Disability

e)

Workers’ compensation

16.

Which is the correct type of insurance that would be used: Joey’s father is in a car accident and cannot work. What type of insurance replaces his father’s earnings?

a)

Property and liability

b)

Health

c)

Life

d)

Disability

e)

Workers’ compensation

17.

Liability insurance covers accidental harm that may be caused to other people or property.

a)

True

b)

False

18.

Identify a mistake people make

a)

They do not keep track of the money they spend

b)

They forget to save money

c)

They buy things impulsively

d)

They ignore their budget

e)

All answers listed are mistakes people make!

19.

Money is taken from a savings or checking account to cover purchases using this card...

a)

Debit Card

b)

Credit Card

c)

Debit Card & Credit Card

20.

Which card would you use to "buy something now; pay for it later"?

a)

Debit Card

b)

Credit Card

c)

Debit Card & Credit Card

21.

What is the money one spends on bills or obligations called?

a)

income

b)

insurance

c)

salary

d)

expenses

22.

This is a good spending rule to follow:

Spend more than you make.

a)

True

b)

False