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Understanding Financial Terms Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is the main difference between a salary and wages?

a)

Salary is paid weekly, while wages are paid monthly.

b)

Salary is a fixed amount paid regularly, while wages are paid based on hours worked.

c)

Salary is only for part-time jobs, while wages are for full-time jobs.

d)

Salary is paid in cash, while wages are paid by check.

2.

Which of the following is an example of a fixed cost?

a)

Grocery shopping

b)

Monthly rent

c)

Buying new clothes

d)

Eating out at restaurants

3.

If you earn $500 a week, what is your monthly income assuming 4 weeks in a month?

a)

$1,500

b)

$2,000

c)

$2,500

d)

$3,000

4.

Which of the following best describes a budget?

a)

A list of all the things you want to buy

b)

A plan for how to spend and save your money

c)

A record of all your past expenses

d)

A summary of your income sources

5.

What is the difference between monthly expenses and annual expenses?

a)

Monthly expenses are paid every month, while annual expenses are paid once a year.

b)

Monthly expenses are always higher than annual expenses.

c)

Monthly expenses are for personal items, while annual expenses are for business items.

d)

Monthly expenses are only for bills, while annual expenses are for vacations.

6.

If your monthly income is 3,000andyourmonthlyexpensesare3,000 and your monthly expenses are 2,500, how much money do you save each month?

a)

$300

b)

$400

c)

$500

d)

$600

7.

Which of the following is considered an expense?

a)

Receiving a paycheck

b)

Paying for groceries

c)

Earning interest from a bank

d)

Getting a gift

8.

If you have a budget of 100forentertainmenteachmonth,andyouspend100 for entertainment each month, and you spend 25 on a movie, how much do you have left for the rest of the month?

a)

$50

b)

$60

c)

$75

d)

$80

9.

What is the primary purpose of having a budget?

a)

To ensure you spend all your money

b)

To help manage your income and expenses

c)

To keep track of your friends' spending

d)

To avoid paying taxes

10.

If you receive a salary of $2,400 per month, what is your annual salary?

a)

$24,000

b)

$28,800

c)

$30,000

d)

$32,000