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Everfi: Future Smart test

Total questions: 18

Worksheet time: 12mins

Name
Class
Date
1.

Select the answer that best describes opportunity cost:

a)

a. The amount of money you put into savings every year.

b)

. What you give up as a result of choosing one option versus another; a trade-off.

c)

The amount of money a business makes every year from sales.

d)

What you gain as a result of choosing one option versus another; a benefit.

2.

Which of the following expenses should be included in a typical budget?

a)

taxes

b)

charitable giving - charities

c)

savings

d)

All of the expenses should be included in a typical budget

3.

Which of the following would be considered a want for most people?

a)

A brand-name jacket

b)

Transportation to get to work

c)

A place to live

d)

Nutritious food

4.

If you know the unit price of an item, you are better able to:

a)

Compare prices of two brands

b)

Estimate how much you will need

c)

Determine the total cost of the purchase

d)

Figure out the discount during a sale

5.

Your friend’s parents are worried about going over their budget for the month. Which expense would you suggest is NOT a need?

a)

rent payment

b)

car insurance

c)

cable service

d)

groceries

6.

What factor has the biggest impact on a credit score?

a)

having a variety of credit

b)

the amount of money you owe on your credit cards

c)

your history of making payments on time

d)

the number of years that you have used credit responsibly

7.

A ______ is usually paid on a biweekly or monthly basis for professional employment.

a)

salary

b)

stipend

c)

wage

d)

benefit

8.

What is the best strategy to avoid paying interest on your credit cards?

a)

pay the minimum balance each month

b)

pay the full balance each month

c)

have credit cards from two different banks

d)

make payments online

9.

Amy's new summer job at the pool will pay her $9 hour. Which term describes this type of hourly income?

a)

salary

b)

stipend

c)

wage

d)

benefit

10.

What is the problem with paying only your minimum credit card balance each month?

a)

it lowers your credit score

b)

you have to pay interest

c)

the bank will cancel your credit card

d)

all of the above

11.

Income earned on an hourly basis is called a:

a)

salary

b)

stipend

c)

wage

d)

benefit

12.

A _______ is a small piece of ownership in a company.

a)

Stock

b)

Bond

c)

Mutual Fund

d)

Derivative

13.

________ are loans to a company or government for a set amount of time. They are considered low-risk investments.

a)

Stocks

b)

Bonds

c)

Mutual funds

d)

Deposits

14.

card that connects directly to your checking account; purchases you make with this card are immediately subtracted from your bank account

a)

debit card

b)

credit card

15.

The average price of a gallon of milk increased from $3.00 last year to $3.50 this year. This is most likely due to ______________________.

a)

inflation

b)

the stock market

c)

deflation

d)

the market basket

16.

Which interest-bearing account is best for people who won’t need access to their money for more than a year?

a)

Savings Account

b)

Checking Account

c)

Certificate of Deposit

d)

Credit Card

17.

If a person has liability insurance, what would they be covered for?

a)

Repairing damage to other cars if they got into an acciden that was their fault

b)

Repairing damage to their own car if they got into an accident that was their fault

c)

Repairing damage to their car that was caused by storms or theft

d)

All of the above

18.

___________ are loans to a company or government for a set amount of time. They are considered low-risk investments.

a)

Stocks

b)

Bonds

c)

Mutual funds

d)

Deposits