Free Printable Unit 5 (Chapter 4) Budget Review (SPF & PF)

1.

A personal net worth is calculated by...

a)

total assets + total liabilities

b)

total assets - total liabilities

c)

total liabilities - total assets

d)

total assets x total liabilities

2.

Examples of fixed expenses include ...

a)

Rent

b)

gas

c)

groceries

d)

entertainment

3.

Which of the following would typically be considered a need (rather than a want)?

a)

A new car

b)

housing

c)

vacation trip

d)

several pairs of shoes

4.

The amount of money a person has to spend after needs are met is called

a)

net income

b)

profit

c)

discretionary income

d)

none of the above

5.

Which of the following would be considered a cash inflow?

a)

net pay

b)

rent

c)

savings

d)

expenses

6.

Which of the following is an asset?

a)

credit card balance

b)

net worth

c)

savings account

d)

car loan

7.

The "VALUE" of what you give up (when you make a choice) is the

a)

tradeoff

b)

asset

c)

net worth

d)

opportunity cost

8.

Items for which you must spend money are called

a)

assets

b)

Income

c)

net worth

d)

expenses

9.

Differences between planned income or spending and actual income or spending are called

a)

profits

b)

variances

c)

income

d)

expenses

10.

The amount you budgeted to spend on food for June was $500. The amount you actually spent was $455, resulting in a

a)

$45 unfavorable variance

b)

$55 favorable variance

c)

$45 favorable variance

d)

$55 unfavorable variance

11.

A person whose annual salary is $18,000 earns how much monthly income.

a)

$1,000

b)

$1,500

c)

$2,000

d)

$150

12.

If you make $118 per week, what is your annual income?

a)

$11,800

b)

$5,900

c)

$6,136

d)

$1,416

13.

A budget is a plan on expected income and expenses. Why would an individual NOT want to create a budget?

a)

It would help an individual learn to manage his/her money.

b)

It would help an individual learn to spend money uncontrollably.

c)

It would help an individual meet his/her financial goals.

d)

It would help an individual plan how to spend his/her money.

14.

Which of the following is a variable expense?

a)

rent for an apartment that has a yearly lease

b)

payment for car insurance

c)

car payment

d)

entertainment

15.

Which of the following is a fixed expense?

a)

food

b)

rent for an apartment that has a yearly lease

c)

utilities

d)

entertainment

16.

Libby sets aside $125 for savings each time she is paid before she pays any of her bills. What is she doing by setting this money aside?

a)

She is paying herself first.

b)

She is keeping the money safe.

c)

She is paying her bills.

d)

She is earning interest.

17.

Regan has priced a Ipad at the local stores and has found that she has saved enough money to purchase one, but has decided to wait to make a purchase in hopes of getting a better deal. What trade-off has she made?

a)

Opportunity Cost

b)

Economic Choice

c)

Trade Decision

d)

Net Worth

18.

After Kena and Kia got married, they developed a plan on how to spend, save and invest their money so they can live a comfortable lifestyle, retire some day, and achieve their financial goals. What process did they implement?

a)

Personal Goals

b)

Financial Planning

c)

Retirement Planning

d)

Inflation Reduction

19.

Which of the following would represent a medium-term goal for a high school student?

a)

go to a dance in a month

b)

buy a car in two years

c)

retire at age 55

d)

repay a college loan

20.

Costs that do not change each month

a)

assets

b)

fixed expenses

c)

budget

d)

variable expenses

21.

Money and items of value that you own

a)

net worth

b)

assets

c)

fixed expenses

d)

opportunity cost

22.

The difference between your assets and your liabilities

a)

net worth

b)

fixed expenses

c)

liabilities

d)

budget

23.

A spending and saving plan based on expected income and expenses

a)

net worth

b)

fixed expenses

c)

budget

d)

timeline

24.

A scam in which an e-mail is sent from someone posing as your bank or other business asking for personal information

a)

phishing

b)

net worth

c)

assets

d)

budget

25.

Standards against which progress is measured (Extra Credit)

a)

liabilities

b)

benchmarks

c)

budget

d)

timeline

26.

Debts that you owe

a)

net worth

b)

assets

c)

opportunity cost

d)

liabilities

27.

Costs that can go up or down each month

a)

opportunity cost

b)

benchmarks

c)

budget

d)

variable expenses

28.

What is the net worth of the car

a)

$15,532.68

b)

$9,495.00

c)

$6,028.68

d)

$3,466.32

29.

Calculate the amount of Ron's current liabilities

a)

$50.01

b)

$6,113.69

c)

$85.01

d)

$6,02.68

30.

Megan graduated from college 2 years ago and has been working as an Advertising Director. She has worked hard over the last 2 years to save money so that she could move towards the next stage of her life. She wants to purchase a home. She plans on meeting with her local banker so she has organized her current financial information for her meeting.

Student Loan: $25,000.00; Savings Account: $10,000.00; Savings Bonds: $5,000.00; Checking Account: $15,000.00; Retirement Account: $8,000.00

Which of Megan's financial items would be considered a liability?

a)

Her student loan

b)

Her saving account

c)

Her retirement account

d)

Her saving bond

31.

Megan graduated from college 2 years ago and has been working as an Advertising Director. She has worked hard over the last 2 years to save money so that she could move towards the next stage of her life. She wants to purchase a home. She plans on meeting with her local banker so she has organized her current financial information for her meeting.

Student Loan: $25,000.00; Savings Account: $10,000.00; Savings Bonds: $5,000.00; Checking Account: $15,000.00; Retirement Account: $8,000.00

What Would be the total of Megan's assets?

a)

$25,000

b)

$30,000

c)

$33,000

d)

$38,000

32.

Megan graduated from college 2 years ago and has been working as an Advertising Director. She has worked hard over the last 2 years to save money so that she could move towards the next stage of her life. She wants to purchase a home. She plans on meeting with her local banker so she has organized her current financial information for her meeting.

Student Loan: $25,000.00; Savings Account: $10,000.00; Savings Bonds: $5,000.00; Checking Account: $15,000.00; Retirement Account: $8,000.00

What is Megan's net worth?

a)

$10,000

b)

$13,000

c)

$17,000

d)

$22,000

33.

The Richardson's, Jill and Tim keep their financial records on their computer. They use a spreadsheet software to create a budget and keep their checkbook register. They also store their federal income tax forms electronically. Their financial records contain their social security number, their birth date, and their checking and savings account numbers.

The Richardson's friend Patrick has suggested that they convert their data into a coded form when sending it over the Internet with software. What is this called?

a)

Encryption

b)

Hacking

c)

Variance

d)

Phishing

34.

The Richardson's, Jill and Tim keep their financial records on their computer. They use a spreadsheet software to create a budget and keep their checkbook register. They also store their federal income tax forms electronically. Their financial records contain their social security number, their birth date, and their checking and savings account numbers.

How can the Richardson's best protect their electronic financial records when accessing the Internet with the computer that they store their financial records on?

a)

They should install a firewall.

b)

They should install a keylogger.

c)

They should install a virus.

d)

They should install software sent in an email.

35.

The Richardson's, Jill and Tim keep their financial records on their computer. They use a spreadsheet software to create a budget and keep their checkbook register. They also store their federal income tax forms electronically. Their financial records contain their social security number, their birth date, and their checking and savings account numbers.

Which of the following is a benefit of electronic records for the Richardson's?

a)

They can access information quickly.

b)

They can store the files in a file cabinet.

c)

They can't show their information to others.

d)

They can't update their information.

36.

When inflation rises, it has what affect on people's standard of living?

a)

Your standard of living will not be affected.

b)

You will need to earn more money to maintain your standard of living.

c)

You will have extra money to maintain your standard of living.

d)

You will have more money to spend on your wants and needs.

37.

How could you increase your net worth?

a)

Spend more than you make.

b)

Pay off previous debts with your paycheck.

c)

WIthdraw money from your savings account.

d)

Borrow money to pay off your debts.

38.

To maximize your purchasing power and buy what you need, you should use what strategy?

a)

Shop when you are hungry

b)

Emotional Buying

c)

Impulse Buying

d)

Use a shopping list

39.

Which of Emily and Blake's expenses would be classified as a VARIABLE EXPENSE?

a)

house payment

b)

car insurance

c)

car payment

d)

utilities

40.

Which of Emily and Blake's expenses would be classified as a FIXED EXPENSE?

a)

utilities

b)

student loans

c)

personal/care laundry

d)

gas purchases

41.

What is Emily and Blake's BUDGET VARIANCE (Income-Total Expenses)?

a)

positive $760 variance

b)

negative $760 variance

c)

positive $1520 variance

d)

$0.00 variance

Unit 5 (Chapter 4) Budget Review (SPF & PF)

Total questions: 41

Worksheet time: 1hrs 2mins

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