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Unit 3 Principles of Money Exam Study Guide

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

What does PIN stand for?

a)

Personal Information Number

b)

Personal Identification Number

c)

Private Internet Number

d)

Public Identification Number

2.

What is a check?

a)

A digital payment method

b)

A written order to pay someone from your bank account

c)

A type of credit card

d)

A savings account feature

3.

What is an overdraft?

a)

A type of savings account

b)

Spending more money than you have in your checking account

c)

A fee for using an ATM

d)

A reward for using a credit card

4.

What is a Credit Score?

a)

A number representing your bank balance

b)

A number representing your creditworthiness

c)

A type of loan

d)

A fee for using a credit card

5.

What is a savings account?

a)

An account for everyday expenses

b)

An account where you keep money safe and earn a little extra money over time

c)

A type of loan

d)

A prepaid card

6.

What is an ATM?

a)

A machine that dispenses snacks

b)

A machine that lets you withdraw money from your bank account using a card

c)

A device for online shopping

d)

A tool for budgeting

7.

What is a Checkbook Transaction Register?

a)

A tool for online banking

b)

A booklet to record all transactions in your checking account

c)

A type of credit card statement

d)

A savings account summary

8.

What is a Prepaid Card?

a)

A card that lets you borrow money

b)

A card you can load money onto and use like cash

c)

A card for earning rewards

d)

A card for overdrafts

9.

What is an Annual Fee?

a)

A fee for using an ATM

b)

A yearly charge for having a credit card

c)

A fee for overdrafting your account

d)

A fee for opening a savings account

10.

What is a checking account?

a)

An account for long-term investments

b)

An account where you can deposit and withdraw money easily

c)

A type of credit card

d)

A tool for recording transactions

11.

What is Cashback?

a)

Money you get back when you use your credit card to buy things

b)

A fee for using a credit card

c)

A type of loan

d)

A savings account feature

12.

What is a debt?

a)

Money that you owe to someone

b)

A type of savings account

c)

A reward for using a credit card

d)

A fee for using an ATM

13.

What is a loan?

a)

Money that someone borrows from another person or a bank

b)

A type of savings account

c)

A fee for using a credit card

d)

A reward for using a credit card

14.

What is a Credit Limit?

a)

The minimum amount you can borrow on a credit card

b)

The maximum amount of money you can borrow on a credit card

c)

The interest rate on a loan

d)

The fee for using a credit card

15.

What is a budget?

a)

A plan for how you spend your money

b)

A type of credit card

c)

A savings account feature

d)

A fee for using a credit card

16.

Emily wants to make a purchase but doesn't have enough cash. She decides to use a card that allows her to borrow money and pay later. What type of card is she using?

a)

Prepaid Card

b)

Debit Card

c)

Credit Card

d)

ATM Card

17.

Michael is trying to make a purchase but realizes he has spent more than what is available in his checking account. What financial term describes this situation?

a)

Savings

b)

Overdraft

c)

Cashback

d)

Credit Limit

18.

Which of the following is a card that you can load money onto and use like cash?

a)

Credit Card

b)

Prepaid Card

c)

Debit Card

d)

Check

19.

Which of the following is a written order to pay someone from your bank account?

a)

Check

b)

Debit Card

c)

Prepaid Card

d)

Credit Card

20.

Which of the following describes a plan for how you spend your money?

a)

Budget

b)

Loan

c)

Debt

d)

Savings

21.

Which financial product allows you to earn points or miles that can be redeemed for travel or merchandise?

a)

Prepaid Card

b)

Rewards Credit Card

c)

Savings Account

d)

Checking Account

22.

Samantha wants to keep her money safe and earn interest over time. Which type of account should she consider?

a)

Checking Account

b)

Prepaid Card

c)

Savings Account

d)

Credit Card

23.

What is the term for the extra money you pay when you borrow money, usually expressed as a percentage of the balance?

a)

Cashback

b)

Interest

c)

Annual Fee

d)

Credit Limit

24.

If a person has a high credit score, what does it indicate about their financial behavior?

a)

They have a high amount of debt.

b)

They are likely to default on loans.

c)

They have a history of responsible financial behavior.

d)

They frequently overdraft their accounts.

25.

Which of the following is a yearly charge for maintaining a credit card?

a)

Cashback

b)

Annual Fee

c)

Interest

d)

Rewards

26.

What is the term for the maximum amount of money you can borrow on your credit card?

a)

Credit Score

b)

Credit Limit

c)

Overdraft

d)

Loan Amount

27.

David is recording all his financial transactions to keep track of his spending. Which tool is he most likely using?

a)

Credit Score

b)

Checkbook Transaction Register

c)

Annual Fee Statement

d)

Loan Agreement

28.

Jessica wants to withdraw cash from her bank account without visiting the bank. Which of the following options should she use?

a)

Prepaid Card

b)

Automated Teller Machine (ATM)

c)

Checkbook Transaction Register

d)

Credit Card

29.

Which of the following is a secret code used to access bank accounts and ensure security during transactions?

a)

APR

b)

PIN

c)

Credit Limit

d)

Interest Rate

30.

Which of the following is a number that represents an individual's creditworthiness?

a)

Credit Score

b)

APR

c)

PIN

d)

Loan Amount