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UNIT 2 TEST (Chapters 3, 8, 12)

Total questions: 32

Worksheet time: 11mins

Name
Class
Date
1.

Avery, Ava, and Zoe went to buy their favorite snacks at the store. When they paid, they noticed an extra charge added to their bill. This extra amount is an example of which type of tax?

a)

Gift tax

b)

Property tax

c)

Sales tax

d)

Wealth tax

2.

Grace just received her paycheck and is excited to see how much she actually gets to take home. The amount of money Grace takes home in her paycheck is called (a)   .

Choose from the below words

Budget

Cash-flow statement

Gross income

Net income

3.

Noah, Mia, and Aiden are learning about finances. Which one of the following is an example of an asset that they might own?

a)

Car loan for your personal vehicle

b)

Computer equipment that you own

c)

Credit card to your favorite store

d)

Rent that you pay every month

4.

James is reviewing his monthly budget and notices that his rent always stays the same. He realizes this is a(n) (a)   . Can you help James figure it out?

Choose from the below words

Fixed Cost

Variable Cost

Total Cost

Opportunity Cost

5.

Aiden and Ethan are planning a road trip! As they budget for their adventure, they realize the cost of gas and groceries is an example of a(n) (a)   . What type of expense is this?

Choose from the below words

Discretionary expense

Fixed expense

Intermittent expense

Variable expense

6.

Avery and Mia are planning their monthly expenses. To budget with a(n) (a)   , they decide to prioritize their expenses from the most to the least important so that all of their top priorities are covered first. What type of income are they working with?

Choose from the below words

Gross income

Irregular income

Net income

Salary

7.

Luna, Benjamin, and Charlotte are trying to manage their money better. What will tracking their expenses help them do?

a)

Catch errors

b)

Make adjustments

c)

Stick to a budget

d)

All of the above

8.

Aria, Evelyn, and Benjamin are learning about the Four Walls. Which one of these is NOT considered one of the Four Walls?

a)

Food

b)

Schooling

c)

Shelter

d)

Utilities

9.

Noah and Avery are planning a school project that will take ten months to complete. The goal they set for this project is considered a (a)   . Can you help them figure out what type of goal it is?

Choose from the below words

Short-term goal

Medium-term goal

Long-term goal

10.

Lily and Luna are chatting about money habits. Lily says, "Whether you're a saver or a spender, it doesn't affect how you act when shopping!" Do you agree with Lily?

a)

True

b)

False

11.

Hannah just started her first job and wants to make sure the right amount of income tax is taken out of her paycheck. Which form does she need to give her employer?

a)

Form W-2

b)

Form W-4

c)

Form 1098

d)

Form 1099

12.

Nora wants to buy a new bike, but she needs to borrow some money from the bank. The bank tells her there will be a special fee added for using their money. What is this extra cost called?

a)

Interest

b)

Discount

c)

Dividend

d)

Commission

13.

Abigail just got her first job! ________ is the money you make from working at your job, just like Abigail does.

Choose from the below words

Earned income

Passive income

Portfolio income

Withholdings

14.

Mia and Aiden are helping their school accountant organize records. They learn that the 12-month period used for reporting financial activity is called the (a)   . Can you help them remember the term?

Choose from the below words

Audit

Deficit spending

Fiscal year

Tax day

15.

Aiden, David, and Ava are creating their own budgets. How many categories should they include to make sure their budgets work best for them?

a)

5

b)

10

c)

20

d)

As many as you need

16.

Hannah, Harper, and Jackson are helping their friend John figure out his net worth for a fun financial challenge! John has a savings account worth $1,400, a car worth $11,000 with a loan on it of $7,500, student loans totaling $12,000, a retirement account worth $9,000, a credit card with a total of $5,000, medical bills totaling $1,800, and antiques worth $1,200. What is John's net worth?

a)

-$3,700

b)

$3,700

c)

$1,700

d)

-$3,100

17.

Rachel is helping her friends Daniel and Maya with their Zero-Based Budgets! She wants to buy new shoes for $40. Should Rachel put this under Income or Expense?

a)

Income

b)

Expense

18.

Arjun and Grace want to become future millionaires! What two elements do they need to build wealth through compound growth?

a)

Money invested and time

b)

Money Market accounts and Stocks

c)

An inheritance and a lawyer

d)

A wealthy relative and a good CD account

19.

Michael and Abigail are comparing their savings accounts. Michael's account lets him take out money anytime, while Abigail's is less flexible. The more liquid your money is in a savings account, the (a)   interest you will earn. Who will likely earn more interest?

Choose from the below words

less

more

20.

Samuel, Arjun, and Anika are talking about why it's important to save money. What are the main reasons they should save?

a)

Emergencies, large purchases, and wealth building

b)

Paying for your dream home, buying your dream car, and going on your dream vacation

c)

Buying gifts, donating to charities, and building up a college fund for your kids

d)

Investing, indulging, and influencing

21.

Noah is driving to school when suddenly his car tire blows out! Which of the following would be considered an emergency fund expense for Noah?

a)

shoe sale

b)

blown car tire

c)

buying Christmas presents

d)

discounted concert tickets

22.

Elijah just bought a cool gadget, but now he's wishing he hadn't spent the money. What is Elijah experiencing?

a)

Impulsiveness

b)

Time value

c)

Buyer's remorse

d)

Selfishness

23.

Anika, Ava, and Charlotte are comparing different bank services to see who can earn the most interest on their savings. Which bank service would typically offer the highest interest rate?

a)

Basic savings accounts

b)

Certificates of deposit

c)

Checking accounts

d)

Money market accounts

24.

Scarlett, Evelyn, and Mia are all learning about managing their money. No matter how you choose to track your transactions (income and expenses), you are responsible to (a)   your account, just like they do!

Choose from the below words

Overdraft

Protect

Reconcile

Underbank

25.

Noah just opened a savings account at his local bank. He notices that his money is growing over time! Why does Noah's savings account earn interest?

a)

Because you deposit money, adding to your principal each month

b)

Because the bank pays you to use your money

c)

Because of inflation

d)

Because those accounts always have great interest rates

26.

Mia, Oliver, and Nora are discussing their future savings. Which of the following is NOT considered a true retirement plan?

a)

401K

b)

403B

c)

IRA

d)

SIP

27.

Emma and Rohan are planning for their retirement. They want an investment account where their withdrawals will be tax-free because their contributions were already taxed. Which account should they choose?

a)

401K

b)

457

c)

Roth IRA

d)

Standard IRA

28.

Aria and Liam are discussing investments. Aria says, "Investments that have low risk usually have a (a)   return." What do you think?

Choose from the below words

low

high

medium

variable

29.

Scarlett and Arjun are thinking about investing in a mutual fund. They wonder what happens to their money. When investing in a mutual fund, (a)   .

Choose from the below words

All of your money is invested into one stock

Your money is spread out amongst different stocks

Your money can only be invested once and can not be changed

30.

Olivia and Mason are comparing credit unions and retail banks. Olivia says credit unions usually require you to be a member based on certain criteria. Is Olivia correct?

a)

True

b)

False

31.

Henry, Arjun, and Nora are discussing ways to handle money troubles. Some people, like them, might think about using payday loans or other alternate financial services. But did you know these services can actually make you lose more money in the end?

a)

True

b)

False

32.

A family of four wants to take a trip during the kids' summer break. They plan to save $1,800 total, and summer break is in nine months. How much will they need to save each month?

a)

$200

b)

$150

c)

$250

d)

$100