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Introduction to Personal Finance

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.
The cost of borrowed money, usually expressed as a percentage.
a)
interest
b)
savings plan
c)
scarce
d)
purchase
2.
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
3.
This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.
a)
compound interest
b)
emergency fund
c)
APR
d)
debt
4.
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)
Credit
5.

Student loans can be subsidized (by the government) or unsubsidized, and cannot be discharged with bankruptcy.

a)

true

b)

false

6.

Which budget item will most likely take up the largest percentage of your income at 25-30%?

a)

transportation

b)

housing

c)

groceries

d)

saving/investing

7.

A person or business that offers loans at extremely high interest rates

a)

entrepreneur

b)

loan shark

c)

creditor

8.

All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc.

a)

Personal finance

b)

Economy

9.

A person or organization that uses a product or service

a)

consumer

b)

borrower

10.

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

a)

bills

b)

interest

11.

A system by which goods and services are produced and distributed

a)

economy

b)

liabilities

12.

The knowledge and skill set necessary to be an informed consumer and manage finances effectively

a)

financial literacy

b)

budgeting

13.

The granting of a loan and the creation of debt; any form of deferred payment

a)

annual fee

b)

credit

14.

Only a few people in America have the ability to become a millionaire.

a)

True

b)

False

15.

Money earned

a)

spend

b)

income

c)

purchase