WorksheetsMAJOR SUMMATIVE 1: INTRO
Total questions: 20
Worksheet time: 30mins
According to the summary, what is the first thing you have to do to create a budget?
Track your spending
Add up all of your income after taxes or net pay
Stick to the budget
List your expenses
According to the summary, what is the 50/30/20 budget strategy?
50% into savings, 30% into wants, 20% into necessities
50% into necessities, 30% into wants, 20% into savings
50% into wants, 30% into necessities, 20% into savings
50% into savings, 30% into necessities, 20% into wants
Define the element of creditworthiness: Conditions.
Conditions are external factors like industry trends, economic conditions, and the purpose of the loan.
Conditions refer to the borrower's personal spending habits and lifestyle choices.
Conditions are the specific assets pledged as collateral for the loan.
Conditions are the borrower's history of repaying previous debts.
According to the summary, which of the following is considered a savings/future expense in a budget?
Utilities
Hobbies
Investing
Health
Which type of business loan is used for buying business property and requires a large down payment?
Real estate Loans
Equipment Loans
Line of Credit
Invoice Financing
Based on the personal budget table, name two types of expenses that are commonly tracked in a budget.
Rent and groceries
Vacation and lottery tickets
Gifts and investments
Donations and windfalls
Which of the following is NOT typically included as an expense in a monthly budget?
Rent
Student Loan
Streaming Service
Lottery Tickets
Step 1 in creating a budget is to calculate your income.
True
False
Which of the following is NOT listed as a savings/future expense in a budget?
A) Investing
B) Savings
C) Insurance
D) None of the above
According to the 50/30/20 budgeting rule, what percentage of your income should be allocated to essential needs?
30%
50%
20%
70%
Fill in the blank: A contract confirms __________, rights, and duties at the end of a bargain.
obligations
payments
witnesses
locations
Fill in the blank: ______ allows customers to borrow money from a credit card company to make a purchase and pay back later.
Credit Cards
Debit Cards
Gift Cards
Prepaid Cards
List the four main budget strategies mentioned in the summary.
1. 50/30/20 budget 2. 60% solution 3. Reverse budget 4. Subtract all expenses from income strategy
1. Envelope method 2. Zero-based budget 3. 80/20 rule 4. Pay-yourself-first plan
1. 70/20/10 budget 2. Cash-only strategy 3. Annual review method 4. Debt avalanche approach
1. 40/30/30 budget 2. Sinking fund method 3. Weekly allowance plan 4. Expense tracking system
Fill in the blank: The second step to make a budget is to _________.
List your expenses.
Spend all your money.
Ignore your income.
Guess your savings.
According to the passage, what is the first step you must take before creating a budget?
List your expenses
Calculate your income
Buy a calculator
Watch a video
Fill in the blank: ______ are direct transfers of funds between bank accounts, often used for large transactions.
Bank Transfers (Wire Transfers)
Credit Cards
Checks
Mobile Payments
What are the three main categories of budgeting mentioned in the summary? Fill in the blank: __________, lifestyle/fun, savings/debt.
necessities
entertainment
transportation
investments
Fill in the blank: In the envelope system, you add cash to an individual envelope for each ______ and only pay for expenses from corresponding envelopes.
expense
month
person
income
Define the element of creditworthiness: Collateral.
Collateral is an asset pledged as security for a loan, reducing the lender’s risk.
Collateral refers to the interest rate charged on a loan.
Collateral is the credit score of the borrower.
Collateral is the income level required to qualify for a loan.
According to the summary, which of the following is considered a lifestyle expense in a budget?
Food
Travel
Insurance
Savings
