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Unit 1.1 - 1.2 Financial Literacy Terms

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

Financial competence – Being able to ________________ your __________ wisely.

a)

manage; finances

b)

spend; time

c)

ignore; problems

d)

waste; resources

2.

Cost-benefit analysis – Comparing the ________________ and the ________________ of a choice before deciding.

a)

costs; benefits

b)

risks; rewards

c)

inputs; outputs

d)

gains; losses

3.

Marginal benefit – The extra __________ you get from adding one more of something.

a)

benefit

b)

cost

c)

risk

d)

loss

4.

Marginal cost – The extra __________ you pay from adding one more of something.

a)

cost

b)

time

c)

effort

d)

benefit

5.

Law of diminishing marginal utility – The __________ you have of something, the less __________ each extra one gives you.

a)

more; satisfaction

b)

less; pain

c)

more; cost

d)

less; value

6.

Trade-off – __________ one thing ________________ another.

a)

giving up; to get

b)

taking; to lose

c)

choosing; to avoid

d)

keeping; to gain

7.

Opportunity cost – The next best thing you __________ when you make a choice.

a)

give up

b)

choose

c)

find

d)

earn

8.

Systematic decision-making – Making choices by following clear _______________.

a)

steps

b)

rules

c)

opinions

d)

guesses

9.

Management – Using __________ (like time, money, skills) wisely to reach goals.

a)

resources

b)

vehicles

c)

buildings

d)

furniture

10.

Personal information management (PIM) – Keeping your personal __________ safe and organized.

a)

information

b)

furniture

c)

vehicles

d)

plants

11.

Fill in the blank: Something that is desired but not essential for basic living, like a new phone, designer clothes, or a vacation, is called a ________.

a)

want

b)

need

c)

obligation

d)

necessity

12.

Fill in the blank: An intangible activity or benefit provided to consumers, such as haircuts, tutoring, or medical care, is called a ________.

a)

service

b)

commodity

c)

good

d)

product

13.

Fill in the blank: A set of personal principles or priorities that determine what is important to you is called a ________.

a)

value system

b)

goals

c)

standard

d)

habit

14.

What is the definition of Financial plan?

a)

a map for how to save, spend, and use money

b)

level of quality you accept

c)

someone who buys goods and services

d)

something you would like but don't need

15.

What is an example of a Need?

a)

nice shoes

b)

steak

c)

cake

d)

hygiene products

16.

Put the 5 components of financial literacy into the order given by Mrs. Yedica.

a)

Income

b)

Budgeting

c)

Saving

d)

Investing

e)

Debt

1)
2)
3)
4)
5)
17.

What is an example of a GOOD?

a)

hair cut

b)

lessons

c)

bread

d)

valet

18.

Define Financial Literacy.

a)

Knowing how money works and how to use it wisely

b)

Someone who buys or uses goods and services

c)

A map for how to spend, save, and use money

d)

Making a plan for your money to reach your goals

19.

Ethics – ____________ (Fill in the blank with the definition of 'Ethics')

a)

Ethics are scientific laws that explain natural phenomena.

b)

Ethics are financial rules for business transactions.

c)

Ethics are artistic techniques used in painting.

d)

Ethics are moral principles that govern a person's behavior or the conducting of an activity.

20.

Match the following.

a)

goal

1.

target you aim at

b)

resource

2.

something you use to reach your goal

c)

standard

3.

level of quality you accept/expect

d)

consumer

4.

buys/uses goods or services

e)

priority

5.

comes first or matters most