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WorksheetsWeek 2 Review
Total questions: 20
Worksheet time: 14mins
When inflation rises at a higher rate than income (wages), purchasing power is _______.
eroded (reduced)
increased
doubled
not impacted
The reason people cannot have everything they want is
shortages
credit problems
scarcity
explicit alternatives
Tati made an impulse purchase by buying a $1,000 purse. An impulse purchase means she most likely did not think of the _____ alternatives for the $1,000.
best
explicit
implicit
other
Which of the following best describes why people are impatient to make a purchase?
Great sales don't last long
Many goods and service won't be available in the future.
There is a fear that money will be worthless in the future.
Consumption today is valued more than consumption in the future.
Opportunity costs is
all of the alternatives we have in making a decision
the condition that exists when there are limited wants and unlimited resources
the value of the next best alternative when a decision is made; what's given up
the price that is paid when purchasing something that you don't really want
All of the following are generally found in personal family budgets EXCEPT
food/groceries
transportation
private school tuition
rent or mortgage payments
All of the following are categories for a budgeted expenses EXCEPT
needs or necessities
wants or discretionary
security or savings
income or investment returns
Charlie takes a job where he will be paid bi-weekly. How many paychecks will he receive over a 12 month period?
12
52
26
There answer cannot be known with the information provided.
How is it possible people can spend more money than they make?
They can purchase using credit.
They can reach a deal with the merchant or store owner.
They can "float" checks to cover the costs today.
It's not possible for people to spend more than they make.
Match the following items with the BEST budget category.
Mortgage payments
Necessities
Netflix
Discretionary
Credit Card Payment
Debt Reduction
Paycheck
Income
Contribution to your son's 529 (education savings plan) account
Savings
Match the following description to the appropriate consumer life cycle stage
Single and financial independent with no children
Alpha
Married but without children
Bravo
Begins with the birth of the first child and ends with the youngest child is school age
Charlie
Begins when all children are full-time school age (beyond preschool) and ends when all children are out of school.
Delta
Begins when all children are out of school (college, etc) and before retirement.
Echo
Credit Unions are different from banks because ________ (choose the BEST answer).
credit union are non-profit organizations
credit unions are "owned" by members who
credit unions can have selected membership
all of these are correct facts about credit unions
If David spends 50% of his net income on essential living expenses, 30% on discretionary expenses, and 20% on savings, he's following the ______.
50/30/20 rule
20/30/50 rule
Order 66
20/20/20/20/20 rule
All of the following are considerations when banks or credit union evaluate auto loan eligibility and terms EXCEPT
Income of borrower(s)
Year, make, model and current value of car
Amount of money needed to complete purchase
Driving record and number of traffic tickets held by primary borrower
When it comes to home loans, there is really only one option.
True
False
The age and condition of the house you want to buy has no impact on your ability to qualify for a mortgage.
True
False
You always have to have an existing relationship with a bank to get a mortgage
True
False
Jack makes $10 an hour at his after school job. He worked 22 hours over the past two weeks and is trying to understand his paycheck. He notes deductions for Federal Taxes ($22.00), State Taxes ($12.00), FICA - Medicare ($8.50), and FICA - Social Security ($3.50). What is his net pay?
The Federal Reserve, aka "the Fed", (a government appointed agency) has significant power/influence over mortgage rates.
True
False
The most popular rule of personal budgeting today is the
50/30/20 rule
40/40/20 rule
rule of 72
rule of 2
