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Budgeting, Banking & Finance Test

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Complete this sentence: A checking account statement...

a)

is the receipt you get from a store when you purchase something using a check

b)

tells you the bank’s policies on fees

c)

lists all the purchases and deposits you’ve made in the previous month

d)

allows you to take out a student loan for college

2.

Which of the following transactions will REDUCE the amount of money in your checking account?

a)

Deposit a check your uncle gives you for your birthday

b)

Use your debit card to get money from an ATM

c)

Buy an expensive new bike using cash

d)

Transfer funds from your saving account to your checking account

3.

Chang wants to use his mobile wallet at a t-shirt shop on vacation. What does he need to do to pay for the item?

a)

He holds his smart phone next to the store’s checkout terminal

b)

He uses his laptop to buy the item on the store’s website

c)

He scans the store receipt using his cell phone within the next 24 hours

d)

He uses his phone to buy a gift card from the store and then buys the t-shirt with the gift card

4.

What is the primary difference between a prepaid card and a gift card?

a)

Prepaid cards can be used to shop online, but gift cards cannot

b)

Prepaid cards are made of plastic, but gift cards are usually cardboard

c)

Prepaid cards can be used at many different stores, but gift cards are usually for a specific store

d)

Prepaid cards are only for people without checking accounts, but gift cards are for everyone

5.

Which of these is a common reason someone would use a peer-to-peer payment app?

a)

To deposit a work paycheck into their checking account

b)

To buy groceries at the supermarket

c)

To repay a friend who covered their costs at a restaurant

d)

To keep track of their spending and saving

6.

Creating a budget can make you feel powerful! Why?

a)

People who budget earn more money, so they can live a better life

b)

A budget puts you in control of your spending and saving, so you make good decisions and feel more confident

c)

You can't really budget unless you have an important job, which means that other people look up to you

d)

Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things

7.

Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...

a)

Cell phone plan

b)

Rent

c)

Clothing

d)

Renters insurance

8.

The two main portions of a budget are...

a)

the money coming in (income) and the money you’re spending (expenses)

b)

the money coming in (expenses) and the money you’re spending (income)

c)

the cash you are spending in stores and the bills you are paying online

d)

the items you want to buy and the money you need to save for retirement

9.

Why is it important to be able to decide if an item is a NEED or a WANT?

a)

Needs are worth spending money on, but you should never spend on a want

b)

Needs can be very expensive, but wants are usually far less expensive so you don’t need to keep track of them

c)

You cannot create a budget that has both needs and wants included -- you need them each in a separate budget

d)

When you budget, you should make sure all your needs are met first, then you can decide to spend on wants

10.

Ethan is considering updating his cell phone plan to include unlimited data. In which situation could unlimited data be a NEED for Ethan?

a)

He loves watching movies, and he’s already paid for all the streaming services, so now he needs the data

b)

Unlimited data will allow him to play video games with his friends even when he’s not at home, and he LOVES video games

c)

He has so many social media accounts, and he needs to be able to check them throughout the day, even while in school

d)

He has an hour-long bus ride each direction to and from school, and he needs that time to complete homework and submit it all online

11.

Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

a)

Will something bad happen if I don’t have this item?

b)

Do any of my friends have this item?

c)

How happy will this item make me?

d)

Will my teachers be excited if I buy this item, or will they be disappointed?

12.

Justine's part-time job pays her $8 per hour. She works for 10 hours this pay period. How much is her gross pay?

a)

$8

b)

$80

c)

$80, minus any taxes she has to pay

d)

$80, plus any taxes she has to pay

13.

Brandon receives his paycheck, and it says his gross pay is $250 and his net pay is $200. How much money did he have in deductions this pay period?

a)

$50

b)

$200

c)

$250

d)

$450

14.

Why should you use your NET pay when creating a budget?

a)

Your net pay will always be higher, so you'll have more money to spend

b)

Your net pay is a more accurate picture of how much money you have available to spend or save

c)

Your employer knows what your gross pay is, but you only know what your net pay is

d)

Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget

15.

Complete this sentence: The federal government budgets its tax money on three large buckets of expenses -- mandatory spending, discretionary spending, and .....

a)

interest on debt

b)

the Constitution

c)

budget funds

d)

free programming

16.

Three of these items represent services provided by the federal government using taxpayer money. Which one represents a personal expense instead?

a)

Military protection

b)

Medicare and Medicaid

c)

NASA space program

d)

Auto insurance

17.

Who has to pay taxes to the US government?

a)

Every citizen, regardless of their age or working status

b)

Every person or company that earns income in the US

c)

Anyone who owns a home or attends a public school

d)

No one has to - taxes are a voluntary program

18.

Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?

a)

50% needs, 30% wants, 20% savings

b)

50% budget, 30% needs, 20% wants

c)

50% saving, 30% needs, 20% wants

d)

50needs,50 needs, 30 wants, $20 savings

19.

How much money has this employee paid in deductions during this pay period?

a)

$0

b)

$50.00

c)

$692.24

d)

$15,921.52

20.

How much money has this employee earned in gross pay this pay period?

a)

$1,307.76

b)

$2,000.00

c)

$30,078.48

d)

$46,000.00