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Ch 2.2 Classwork

Total questions: 9

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following is an accurate financial statistic about millennials?

a)

Less than half of millennials spend money on clothing they don't necessarily need.

b)

The majority of millennials spend money on taxis and Ubers.

c)

About 30% of millennials spend money on eating at trendy restaurants.

d)

About half of millennials spend money on the latest electronic gadget.

2.

The purpose of a budget is to plan your spending and saving, considering your income level, so that you can meet your ________.

a)

needs and wants

b)

immediate needs only

c)

intermediate-term financial goals

d)

long-term dreams only

3.

Which of the following is NOT a step in creating a budget?

a)

considering the effect of taxes

b)

prioritizing your financial goals

c)

identifying your expenses

d)

determining your net worth

4.

Which of the following questions would you answer while establishing your net worth in the budgeting process?

a)

How much income can I expect each month?

b)

How much money do I usually spend in a month?

c)

How much money do I have in the bank now?

d)

How can I decrease the amount of income tax I owe?

5.

You can increase your net worth by increasing your ________ and/or decreasing your ________.

a)

assets; liabilities

b)

liabilities; equities

c)

assets; equities

d)

equities; assets

6.

Which of the following is not a source of income?

a)

Allowance

b)

Car payments

c)

Wages

d)

Salary

7.

The most common investments include __________.

a)

rare automobiles

b)

oil paintings

c)

stocks and bonds

d)

stamp collections

8.

Good record keeping is important for __________.

a)

calculating net worth

b)

estate planning

c)

tax purposes

d)

young children

9.

In general, the higher the risk of a particular investment the higher the potential __________.

a)

record keeping

b)

return

c)

debt

d)

liquidity