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Personal Finance Quiz #1

Total questions: 22

Worksheet time: 15mins

Name
Class
Date
1.

True or False: You can give by donating your time?

a)

True

b)

False

2.

A fee you pay for borrowing someone else's money is ________

a)

Money

b)

Time

c)

Interest

d)

Penalty

3.

What is investing?

a)

Possibility that an investment will fail to pay the expected return

b)

Money invested is usually used to pay for long-term goals

c)

Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss

d)

The danger that money won’t be worth as much in the future as it is today.

4.

How does time effect money?

a)

The more money you save the more you will make

b)

Saving for a short period of time proves long term investments

c)

The longer you save your money the more you will make

5.

The physical form of money, such as coins or paper money.

a)

Balance

b)

Budget

c)

Cash

d)

Copay

6.

What is it called when someone doesn't have enough money in an account to cover a charge?

a)

Insufficient funds

b)

Compound interest

c)

Pending charge

d)

Negative balance

7.

When we budget or buy things what do we need to know?

a)

How much you will get paid next week.

b)

How much money you have

c)

Weekend plans

8.
What is the purpose of a budget?
a)
To limit spending and track income and expenses
b)
To obtain a high credit score
c)
To borrow money from friends or family
9.

Luisa earned $1,200 at her part-time job, and $500 from babysitting in cash. Which is TRUE?

a)

She will report her total income as $1,700.

b)

She will report her total income as $1,200.

c)

She will report her total income as $500.

d)

Luisa is required to file a tax return.

10.

Check all statements that are true about a balanced budget.

a)

A balanced budget is when you have more expense than income.

b)

A balanced budget is when you have the same number of ten dollar bills as one dollar bills.

c)

A balanced budget is when income is equal to or greater than expenses.

d)

A balanced budget helps you make responsible spending and saving decisions.

11.

Making a ________ helps you see how much $ you have and decide how much you can spend.

a)

savings account

b)

job

c)

check book

d)

budget

12.

How is Net Worth calculated?

a)

Revenue minus Expenses

b)

Item Cost plus taxes

c)

Total Value or person's assets minus total liabilities

d)

Money x Money

13.

Learning about money is not that important because you can depend on your parents to manager your money.

a)

True

b)

False

14.

When money is taken out of a checking account it decreases the account balance and is called a:

a)

Withdrawal

b)

Deposit

15.
A plan for spending
a)
income
b)
expenses
c)
sales tax
d)
budget
16.

What is the primary difference between a credit card and debit card?

a)

Debit card uses debt

b)

Credit card uses money directly from bank account

c)

Debit card uses money you have while a credit card uses money you borrow

d)

They're the same thing

17.

Personal Finance is __% knowledge and __% behavior

a)

80%; 20%

b)

20%; 80%

18.

The best way to manage money is to learn how to manage ___________

a)

your work hours

b)

your paycheck

c)

you

19.

When money is put into a checking account it increases the account balance and is called a

a)

Withdrawal

b)

Deposit

20.

What is the First Foundation of Financial Peace is....

a)

Build Wealth

b)

$500 Emergency Fund

c)

Get Out of Debt

d)

Pay Cash for College

21.

What is it called when someone doesn't have enough money in an account to cover a charge?

a)

Insufficient funds

b)

Compound interest

c)

Pending charge

d)

Negative balance

22.

It is important to set aside money in case of …...

a)

a decrease in expenses

b)

income increases

c)

routine expenses

d)

unexpected expenses