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Personal Finance Practice

Total questions: 68

Worksheet time: 1hrs 5mins

Name
Class
Date
1.

A plan for how to manage your money is called a _________.

a)

income

b)

budget

c)

expense

d)

investment

2.

What is variable expense?

a)

The amount of money you spend

b)

The amount of money you save

c)

An expense that costs different amounts every month

d)

The variable in math

3.
An agreement between a borrower and a lender, where the borrower agrees to repay money with interest over time.
a)
Loan 
b)
Interest 
c)
Income 
d)
Deposit  
4.

Which of the following BEST describes income?

a)

Money received from a parent to pay for ice cream at lunch.

b)

Money spent on a pair of new Nike Shoes.

c)

Money donated to a charity.

d)

Money received for completing your weekly chores.

5.

Which of the following is a benefit of having a personal savings plan?

a)

Personal savings plans let people spend more time doing activities they enjoy.

b)

People who save money are able to spend more money in the future and pay for unexpected expenses.

c)

People who save money are able to spend a lot of money right now.

d)

Personal savings plans help people have an unbalanced budget.

6.

Which of the following is a benefit of having a personal savings plan?

a)

Personal savings plans let people spend more time doing activities they enjoy.

b)

People who save money are able to spend more money in the future and pay for unexpected expenses.

c)

People who save money are able to spend a lot of money right now.

d)

Personal savings plans help people have an unbalanced budget.

7.

A budget helps people make responsible economic decisions.

a)

True

b)

False

8.

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.

9.

Which of the following should Sally consider when planning her monthly personal budget?

a)

How many pencils she will trade with another student.

b)

How many beads she will buy at the craft store.

c)

How many books she will read at the public library.

d)

How much tv she will watch this week

10.

A balanced budget is when expenses are greater than income.

a)

True

b)

False

11.

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

a)

True

b)

False

12.

Which of the following is an example of income?

a)

Charging a lunch you will pay tomorrow

b)

Buying an ice cream at lunch today

c)

Money you get for working a job

d)

Trading supplies with a friend

13.

James wants to be the richest person in the world. Which of the following should he include in his personal budget now to make this happen?

a)

How he plans to save money over a long period of time.

b)

How many Pokemon cards he will trade with friends.

c)

How he plans to increase his expenditures this coming year.

d)

How he plans to spend money on himself and others.

14.

What is the difference between income and expense (expenditures)?

a)

An expenditure is money that is saved; an income is money that is spent

b)

An expenditure is money that is earned; an income is money that is received

c)

An income is money that is given to another person; an expenditure is money that is received by another person

d)

An income is money that is received; an expenditure is money that is spent

15.

Which of the following is the MOST financially responsible decision?

a)

Kate sold her old bike helmet for $10 to a friend. She gave the $10 to her favorite charity.

b)

Jared gets $50 for his birthday from his grandma. He spends $75 on XBox games.

c)

Sue was paid $25 for helping her neighbor in the yard. She spent $20 on a t-shirt and $5 on ice cream at the mall.

d)

Jerry earns $100 lifeguarding. He spent $5 on lunch and put the other $95 in the bank.

16.

What elements should be included on a budget? Check all that apply.

a)

A list of chores you complete.

b)

How much money you earned on chores.

c)

A list of all the things you want to buy.

d)

How much money you plan to spend to buy different items.

17.

Which of the following is an expenditure?

a)

Buying an ice cream at lunch

b)

Selling an old game to a friend

c)

Getting paid for helping your neighbor

d)

Allowance from your parents

18.

What do businesses provide?

a)

goods and services

b)

labor

c)

spending and saving

d)

labor

19.

What is supply?

a)

the total amount of a product that producers are willing to make and sell

b)

the amount of product that consumers are willing and able to buy

c)

money left over after all costs of production are paid

d)

two companies fighting for consumers

20.

What is demand?

a)

the total amount of a product that producers are willing to make and sell

b)

the amount of product that consumers are willing and able to buy

c)

money left over after all costs of production are paid

d)

two companies fighting for consumers

21.

What is profit?

a)

the total amount of a product that producers are willing to make and sell

b)

the amount of product that consumers are willing and able to buy

c)

money left over after all costs of production are paid

d)

two companies fighting for consumers

22.

What is competition?

a)

the total amount of a product that producers are willing to make and sell

b)

the amount of product that consumers are willing and able to buy

c)

money left over after all costs of production are paid

d)

two companies fighting for consumers

23.

What is income?

a)

bills that you have to pay

b)

the money you spend as a consumer

c)

when you donate to charity

d)

the money you earn for your labor

24.

What are expenses?

a)

bills that you have to pay

b)

the money you spend as a consumer

c)

when you donate to charity

d)

the money you earn for your labor

25.

What are the four major sectors in the U.S. Economy?

a)

Democracy, Economies, Businesses, and Resources

b)

Households, Private Business, and the Government

c)

Consumers, Producers, Supply, and Demand

d)

Households, Private Business, Banks, and the Government

26.

This sector of our economy is made up of people.

a)

Households

b)

Private Business

c)

Banks

d)

Government

27.

This sector of our economy provides checking accounts, savings accounts, and loans.

a)

Households

b)

Private Business

c)

Banks

d)

Government

28.

This is something that you can touch or hold.

a)

A good

b)

A service

29.

This sector of our economy produces goods and services and then sells them to households.

a)

Households

b)

Private Business

c)

Banks

d)

Government

30.

This is a person who makes or provides goods and services

a)

Producer

b)

Consumer

31.

This is a person who buys goods or services.

a)

Producer

b)

Consumer

32.

People have to work to earn money, and this work is called:

a)

income

b)

taxes

c)

labor

d)

loans

33.

Someone who takes a risk to start a business is called a(n)

a)

Employee

b)

Entrepreneur

c)

Employer

34.

This type of account allows citizens to save money and earn interest while the bank has the money.

a)

Checking Account

b)

Savings Account

35.

This type of account allows citizens to withdraw funds to purchase goods and services by writing a check or using a debit card.

a)

Checking Account

b)

Savings Account

36.

This sector of our economy collects taxes from households and businesses

a)

Households

b)

Private Business

c)

Banks

d)

Government

37.

This sector of our economy uses tax money to provide public services such as schools, roads, national security, and public assistance.

a)

Households

b)

Private Business

c)

Banks

d)

Government

38.

When producers complete for consumers' business, it is called:

a)

Scarcity

b)

Pricing

c)

Competition

d)

Supply and Demand

39.

If a price of a product is too _______, consumers will not purchase the products that they want or need.

a)

High

b)

Low

40.

If a price of a product is too _______, consumers will purchase products, but the producer will fail to make a profit.

a)

High

b)

Low

41.

Which is the best description of a household in the economy?

a)

a consumer

b)

a house and all its occupants

c)

a provider of labor

d)

all of the above

42.

What do households offer to the economy?

a)

Labor

b)

Goods

c)

Factories

d)

Railroads

43.

Which is the best example of a service?

a)

gasoline

b)

cereal

c)

barber

d)

cars

44.

How do banks make a profit?

a)

interest

b)

customer service

c)

selling toys

d)

buying cars and houses

45.

Which is the best description of a loan?

a)

borrowing money without repaying it

b)

borrowing money and keeping it

c)

borrowing money and repaying it with interest

d)

none of the above

46.

Which is the best description for a savings accound?

a)

somewhere risky to store money

b)

lending money to a stranger

c)

borrowing money for a car

d)

somewhere to store money for an emergency or large purchase

47.

Banks make it possible for people and businesses to purchase what they need without having all of the money by offering loans.

a)

true

b)

false

48.

Money that is borrowed, then paid back with interest is...

a)

a bank.

b)

a loan.

c)

a savings account.

d)

a checking account.

49.

What is a function of the United States government in the economy?

a)

taxes

b)

central banking system

c)

provided services to citizens and businesses

d)

all of the above

50.

Which is the best description of a public good?

a)

police

b)

firefighters

c)

teachers

d)

roads

51.

Which is the best description of a public service?

a)

roads

b)

bridges

c)

police

d)

ships

52.

Money collected by the government for goods and services are...

a)

public services.

b)

public goods.

c)

government.

d)

taxes.

53.

Which is this best example of a private business?

a)

a boy purchasing a skateboard

b)

a person buying soap

c)

a restaurant selling soup

d)

a person buying gasoline

54.

What do households need that private businesses create?

a)

consumers

b)

jobs

c)

weather

d)

none of the above

55.

What happens when private businesses do NOT do well?

a)

people spend less money

b)

people lose jobs

c)

people spend more money

d)

both a and b

56.

_____________ produce things that people need and want.

a)

Consumers

b)

Goods

c)

Services

d)

Private businesses

57.

What are public services?

a)

Services provided by private companies to the general public.

b)

Services provided by non-profit organizations to the general public.

c)

Services provided by individuals to the general public.

d)

Services provided by the government to the general public.

58.
Which sector of the American economy is this describing?
Provides checking accounts
a)
households
b)
banks
c)
businesses
d)
government
59.
Which sector of the American economy is this describing?
Collects taxes from the people
a)
households
b)
banks
c)
government
d)
businesses
60.
Which sector of the American economy is this describing?
Consumes (buys) goods such as books, toys, games, and sports equipment
a)
government
b)
businesses
c)
households
d)
banks
61.
Which sector of the American economy is this describing?
Provides savings accounts
a)
households
b)
banks
c)
government
d)
businesses
62.
Which sector of the American economy is this describing?
Manufactures and sells goods such as automobiles, computers, school supplies, and clothing
a)
households
b)
businesses
c)
government
d)
banks
63.
Which sector of the American economy is this describing?
Loans money to customers
a)
households
b)
banks
c)
government
d)
businesses
64.
Which sector of the American economy is this describing?
Produce and sell services such as photography, lawn care, manicures & pedicures, and piano lessons
a)
households
b)
banks
c)
government
d)
businesses
65.
Which sector of the American economy is this describing?
Provides public goods such as highways, parks, and schools
a)
households
b)
banks
c)
government
d)
businesses
66.
_________________ take risks to develop new goods and services to start a business.
a)
Stock Markets
b)
Governments
c)
Entrepreneurs
d)
Households
67.

Match definition to correct term:


Money earned

a)

income

b)

opportunity cost

c)

risk

d)

personal finance

e)

budget

68.

Money earned through work.

SYNONYMS

earnings, wage, profit

a)

income

b)

outcome

c)

expense

d)

account