WorksheetsUnit 3 Principles of Money Exam
Total questions: 60
Worksheet time: 47mins
What is a checking account used for?
To earn interest over time
For everyday expenses
To borrow money
To store physical cash
Fill in the blank: A savings account is where you keep your money safe and earn a little extra money on it over time, known as (a) .
What happens when you have an overdraft?
Your account balance increases
You earn more interest
Your account becomes negative
You receive a reward
What does PIN stand for?
Personal Identification Number
Personal Information Network
Private Identification Name
Public Identification Number
What is an ATM used for?
To deposit checks
To withdraw money using a card
To apply for loans
To earn interest
Fill in the blank: Cash includes physical coins and paper bills, which are (a) .
What is the main difference between a credit card and a debit card?
A credit card is linked directly to your bank account
A debit card lets you borrow money
A credit card lets you borrow money and pay later
A debit card earns interest
Match the following terms with their definitions: 1. Overdraft 2. ATM 3. Savings Account 4. Debit Card
A machine that lets you withdraw money from your bank account using a card
When you spend more money than you have in your checking account
A bank account where you keep money safe and earn interest
A card linked directly to your bank account for immediate transactions
Which of the following is a disadvantage of using cash?
It can be lost or stolen
It earns interest
It is difficult to use
It is not widely accepted
Fill in the blank: A (a) is a secret code you use to access your bank account.
What is the primary purpose of a savings account?
To pay for everyday expenses
To keep money safe and earn interest
To borrow money
To withdraw cash
Which of the following is true about a debit card?
It lets you borrow money
It is linked directly to your bank account
It earns interest
It is only used for online purchases
Fill in the blank: An (a) is a situation where your account balance goes below zero.
Fill in the blank: The yearly cost of borrowing money on a credit card is known as the (a) .
What does the term "credit limit" refer to?
The total amount of interest charged
The maximum amount you can borrow
The amount of cashback you receive
The annual fee for the card
What is the purpose of cashback in credit cards?
To charge you extra fees
To return a percentage of your purchases
To increase your credit limit
To lower your credit score
Open-ended: Explain what a credit score is and why it is important.
What is the relationship between payment history and credit score?
Payment history has no effect on credit score
A good payment history can improve your credit score
A bad payment history can increase your credit score
Payment history only affects loans, not credit cards
Fill in the blank: The extra money you pay when borrowing money is called (a) .
What is an annual fee?
A charge for late payments
A yearly charge for having a credit card
A fee for exceeding your credit limit
A one-time fee for applying for a credit card
What does the term "debt" refer to?
Money you have saved
Money you owe to someone
Money you earn from a job
Money you receive as a gift
Fill in the blank: The amount of money you currently owe on your credit card is referred to as the (a) .
What are rewards in the context of credit cards?
Extra fees charged for using the card
Points or miles earned for purchases that can be redeemed
The interest rate on the card
The credit limit of the card
Open-ended: Why is it important to pay bills on time?
Fill in the blank: A high credit score indicates (a) financial behavior.
What is a budget primarily used for?
To keep track of your grades
To manage your money
To plan your meals
To organize your schedule
Fill in the blank: A checkbook transaction register helps you keep track of your (a) and withdrawals.
What can happen if you do not keep track of your spending with a budget?
You might save more money.
You could end up in debt.
You will always have enough money.
You will know exactly how much money you have.
Open-ended: Why is it important to regularly update your checkbook transaction register?
How do a budget and a checkbook transaction register work together?
They help you plan your meals.
They allow you to track your grades.
They assist in managing your finances and making informed spending decisions.
They are used to organize your daily schedule.
Emily wants to make a purchase but doesn't have enough cash. She decides to use a card that allows her to borrow money and pay later. What type of card is she using?
Prepaid Card
Debit Card
Credit Card
ATM Card
Michael is trying to make a purchase but realizes he has spent more than what is available in his checking account. What financial term describes this situation?
Savings
Overdraft
Cashback
Credit Limit
Samantha wants to keep her money safe and earn interest over time. Which type of account should she consider?
Checking Account
Prepaid Card
Savings Account
Credit Card
Jessica wants to withdraw cash from her bank account without visiting the bank. Which of the following options should she use?
Prepaid Card
Automated Teller Machine (ATM)
Checkbook Transaction Register
Credit Card
John is planning to buy a house and needs to borrow money from the bank. What is the term for the money he borrows?
Debt
Loan
Budget
Credit Score
Michael checks his bank account online and notices a transaction he didn't authorize. Which feature of electronic banking allows him to monitor his account activity?
ATM
PIN
Electronic Funds Transfer (EFT)
Online Banking
How does a credit score impact job offers?
A good credit score guarantees a job
A credit score determines your salary
Credit scores do not affect job offers
A bad credit score can lead to fewer job offers
Who are lenders?
People who manage your bank account
People who evaluate your risk for loans
People who sell insurance
People who borrow money
What is the consequence of a bad credit score?
Higher insurance premiums
Easier loan approvals
Lower interest rates
More job offers
What happens if you have a high amount owed?
Your credit score may decrease
Your credit score improves
You get lower interest rates
You have more available credit
When Jackson wants to buy a car, what role do lenders play in the credit process?
To borrow money from Jackson
To evaluate Jackson's risk for loans
To manage Jackson's savings
To set Jackson's credit score
Why are checks still used for some transactions?
They are faster than electronic transfers
They provide a paper trail and are safer for large amounts
They are universally accepted without any fees
They do not require a bank account
What is a risk of using cash compared to electronic payments?
Cash can be easily tracked
Cash can be lost or stolen
Cash incurs interest charges
Cash requires a bank account
Kayla had a balance of $106.15 in her checking account. She deposited $75.00. What is her new balance?
41.15
171.15
31.15
181.15
Gabe had a balance of $400 in his checking account. He spent $50.00 on concert tickets and he also spent another $30.00 on snacks. He deposited $63.75. What is his new balance?
383.75
371.15
341.15
381.15
John deposits $150 into his checking account and later withdraws $40 for groceries. If his starting balance was $200, what is his new balance?
$310
$290
$260
$230
Sarah writes a check for $75 to pay for her utility bill. If her checkbook register shows a balance of $500 before writing the check, what will be the balance after the check is processed?
$425
$475
$575
$325
If you deposit $200 into your checking account and then withdraw $50, what is the net change in your account balance?
$150
$250
$200
$100
Emily's checkbook register shows a balance of $350. She deposits $120 and then writes a check for $90. What is her new balance?
$380
$440
$480
$370
Tom has a balance of $600 in his checking account. He withdraws $150 for a new gadget. What is his balance after the withdrawal?
$750
$450
$550
$600
If you start with a balance of $1,000 in your checkbook and write checks totaling $300, what is your remaining balance?
$700
$1,300
$1,000
$300
Lisa's checkbook register shows a balance of $250. She deposits $100 and then withdraws $50. What is her new balance?
$300
$350
$400
$200
Mark deposits $500 into his checking account. He then writes a check for $200 and withdraws $100 from an ATM. What is his final balance if he started with $400?
$600
$700
$800
$500
If a credit card has a credit limit of $2,000 and the current balance is $1,200, what is the available credit?
$800
$1,000
$1,200
$2,000
John has a credit card with a credit limit of $1,000. He has already spent $400 this month. How much more can he spend without exceeding his credit limit?
$400
$600
$1,000
$1,400
Sarah's credit card offers 2% cashback on all purchases. If she spends $500 in a month, how much cashback will she earn?
$5
$10
$15
$20
Sophia missed her credit card payment last month. How might this affect her credit score?
It will have no effect on her credit score.
It will improve her credit score.
It may lower her credit score.
It will double her credit score.
If Lisa's credit score drops from 750 to 680, what might be a possible reason?
She paid off all her debts.
She opened a new credit card and maxed it out.
She received a salary increase.
She closed an old credit card account.
If the bank statement shows a balance of $789.25 and the checkbook register shows a balance of $805.50, what is the amount of outstanding checks?
$100.00
$0.00
$16.25
$50.75
Hannah is a student who earns $150 a week from chores. Create a simple budget plan for her, considering savings, spending, and other expenses.
Save $65, spend $35, and keep $50 for emergencies.
Spend all $75 on entertainment.
Save $60 and spend nothing.
Borrow $20 to increase spending.
