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W!SE Test Unit 1 Money Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A common name for US currency is:

a)

Green Backs

b)

Orange Backs

c)

Red Backs

d)

Yellow Backs

2.

Store of value is a key function of our currency. Store of value is best defined by which of the following

a)

Money holds value over time, allowing you to save with confidence

b)

Replaces the barter system because it is accepted by everyone as payment

c)

Money is used as a standard to determine the value of goods and services

d)

A measurement of a number that shows the amount of something

3.

Which of the following is NOT a characteristic of money?

a)

Durable

b)

Reliable

c)

Divisible

d)

Portable

4.

The idea that US currency is given value by the faith that people have in it is to referred to as:

a)

Fiat Currency

b)

Gold Standard

c)

Representative Currency

d)

Commercial Currency

5.

The money I receive BEFORE taxes/deductions come out is referred to as:

a)

Net Income

b)

Gross Income

c)

Complete Income

d)

Taxed Income

6.

Which of the following provides an increase in assets or wealth?

a)

Having Capital Gains

b)

Running in a marathon

c)

Volunteering at a hospital

d)

Taking out a loan

7.

Which of the following is the most common type of income?

a)

Paycheck

b)

Windfall income

c)

Overtime Pay

d)

Rental Property Income

8.

Which of the following is a mandatory (required) deduction?

a)

Life Insurance

b)

Retirement Savings (401k)

c)

FICA Taxes

d)

Automatic Savings Account

9.

The initial amount a lender loans a borrower is called...

a)

The Principal

b)

Loan Balance

c)

Finance Charge

d)

Annual Percentage Rate

10.

Which of the following is the correct definition of interest rate?

a)

The cost of a loan or expected earnings on a savings account

b)

Characteristic used to describe the services money provides

c)

The original amount you borrow on a loan

d)

idea that money can be saved and used for a later time, and still have retained its value at that time

11.

Which of the following is the correct definition of inflation?

a)

When the prices of goods and services fall

b)

When the prices of goods and services rise

c)

A severe or extended recession

d)

A period of negative economic growth

12.

Which of the following is the correct definition of prime rate?

a)

A period of negative economic growth

b)

The interest rate the Federal Reserve charges banks to borrow from them

c)

The interest rate you get for a car loan

d)

Something to do with Amazon

13.

Which of the following best describes a debit card?

a)

A card that allows you to directly withdraw funds from a checking or savings account

b)

A card that lets me borrow money from a bank or other financial institution

c)

Card that gives you access to certain stores

d)

A card that lets you transfer money to and from other individuals

14.

Which of the following best describes the usage of an Electronic Transfer?

a)

Jose pays his rent online through his bank account.

b)

Sammy pays cash for a new video game at Walmart

c)

Keona writes a personal check made out to her landlord that will come out of her checking account

d)

Jaden uses a store specific card to buy coffee in the morning.

15.

New coins and currency make their way into the general economy through the distribution system of--

a)

The Federal Reserve

b)

The US Mint

c)

The Internal Revenue Service

d)

The Treasurer of the United States

16.

Amount left over after taxes and deductions have been taken out of your paycheck.

a)

Gross pay

b)

Net pay

c)

Taxed Pay

d)

Checking Wages

17.

Offered by your employer, you can use this to receive your paycheck quicker.

a)

Direct Deposit

b)

Payroll Taxes

c)

FICA Deductions

d)

Retirement Benefits

18.

This term refers to the skills, knowledge, and education a person possesses.

a)

Capital Gains

b)

Human Capital

c)

Business Capital

d)

Capitalism

19.

This action refers to putting money into an account

a)

Deposit

b)

Withdraw

c)

Limit

d)

Add

20.

Money today is worth more than money tomorrow refers to:

a)

The Time Value of Money

b)

Deflation

c)

The Durability of Money

d)

Medium of Exchange