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Unit 3 Study Guide

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

When one is seeking to purchase a product at a store, what additional cost must be paid in addition to the listed price of the product?

a)

Insurance

b)

Interest

c)

Purchasing fee

d)

Sales tax

2.

Which of the following is a financial institution that handles money, including keeping it safe for saving or commercial purposes?

a)

Payday lender

b)

Bank

c)

Check cashing service

d)

Pawn shop

3.

When one receives a product or service now, but pays for it later, it is known as what?

a)

Credit

b)

Debit

c)

Deduction

d)

Interest

4.

Which of the following purchasing cards removes funds from one’s checking account almost instantly after one makes a purchase?

a)

Credit card

b)

Debit card

c)

Payroll card

d)

Withdrawal card

5.

When planning one’s personal budget, a variable expense is what?

a)

An expense that one does not have to make

b)

An expense in which there are many options to choose from

c)

An expense that may change in amount from month to month

d)

An expense that does not have to be paid immediately

6.

Sales tax amounts are generally established by which of the following?

a)

State and local rates

b)

Federal and state rates

c)

Federal and local rates

d)

Business and federal rates

7.

If one spends more money than they have in their bank account, they are charged a what?

a)

Debt fee

b)

Maintenance fee

c)

Overdraft fee

d)

Reserve fee

8.

Which of the following allows a customer to pay a deposit on an item, and then not receive the item until the balance is paid in full?

a)

Credit card

b)

Increment investing

c)

Layaway plan

d)

Portion payment

9.

Rent-to-own agreements can negatively impact consumers because:

a)

Consumers do not have to pay cash for the item

b)

Consumers will pay a high interest rate on the item

c)

Consumers can immediately have access to the item

d)

Consumers are limited from purchasing similar items

10.

When eating at a restaurant, one must consider which of the following additional costs to the price of their meal and sales tax?

a)

Interest fee

b)

Reservation cost

c)

Service fee

d)

Tip

11.

What is the purpose of sales tax?

a)

To reduce the income tax burden on individuals.

b)

To fund specific government projects and services.

c)

To encourage saving and reduce spending.

d)

To directly tax property ownership.

12.

How do you calculate the amount of sales tax on an item?

a)

Multiply the cost of the item by the sales tax rate.

b)

Divide the cost of the item by the sales tax rate.

c)

Subtract the sales tax rate from the cost of the item.

d)

Add the sales tax rate to the cost of the item.

13.
If a customer buys $300.00 worth of merchandise and the sales tax is 8%, the total bill the customer must pay is:
a)
$300.00
b)
$304.00
c)
$324.00
d)
$342.00
14.
How much tax would you pay on a new TV that is $899 at Best Buy, if the tax rate is 6.5%?
a)
$957.44
b)
$841
c)
$58.43
d)
$905.50
15.

Seth is buying holiday gifts from a store:

Toy car - $14.99

Doll house- $45

4 pair of fuzzy socks- $5/each

Sweater- $28.50

If the sales tax is 8%, what is the total amount of his purchase? Round to the nearest hundredths place.

(a)  

16.

What is considered the appropriate percentage to tip when eating at a restaurant?

a)

5%

b)

No tip

c)

15%-20%

d)

10%

17.

You are buying a shirt at a store. The shirt is in the section marked 20% off. If the original price of the shirt is $23.99, what is the total price of the shirt?

a)

$4.79

b)

$19.20

c)

$28.69

d)

$24.46

18.

The price of a t-shirt is 50$. If you buy 4 shirts, you will get 10% discount. How much do you have to pay if you buy 8 shirts?

a)

$360

b)

$320

c)

$480

d)

$440

19.

You have only 1,000$. The price of a TV-set is 1,150$. Can you buy the TV if you get 10% discount?

a)

Yes

b)

No

20.

The price of a telephone is 200$ in shop A and 240$ in shop B. If you get 15% discount in shop B, where would you buy the telephone (both shops are next to each other) ?

Hint: You want the cheaper price!

a)

Shop A

b)

Shop B