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WorksheetsBanking & Budgeting Unit Test
Total questions: 55
Worksheet time: 18mins
Name
Class
Date
1.
Variable expenses can change from month to month. Which is a variable expense?
a)
Car Payment
b)
Internet Bill
c)
Dining Out
d)
Health Insurance
2.
Supply refers to how much of a good or service is available.
a)
True
b)
False
3.
Which index measures inflation by tracking price changes in goods and services?
a)
GDP
b)
Unemployment Index
c)
Consumer Price Index (CPI)
d)
Stock Index
4.
Cost-push inflation occurs when production costs increase.
a)
True
b)
False
5.
Impulse buying is part of a smart consumer strategy.
a)
True
b)
False
6.
Impulse spending helps improve budgeting discipline.
a)
True
b)
False
7.
Which of the following is an example of a fixed expense?
a)
Groceries
b)
Gas
c)
Rent
d)
Electricity
8.
Subscriptions like Netflix and Spotify are considered fixed expenses.
a)
True
b)
False
9.
An example of a manipulative marketing strategy is:
a)
Clear labeling
b)
Bait and switch
c)
Price transparency
d)
Customer reviews
10.
A mixed economy combines elements of:
a)
Market and traditional economies
b)
Command and market economies
c)
Traditional and barter systems
d)
None of the above
11.
What type of income involves money earned from investments or rental properties?
a)
Wages
b)
Passive Income
c)
Interest
d)
Bonus
12.
What is the main goal of comparison shopping?
a)
Spend more
b)
Avoid shopping
c)
Find the best deal
d)
Buy quickly
13.
Zero-based budgeting ensures every dollar has a purpose.
a)
True
b)
False
14.
Which of these is a strategy for sticking to a budget?
a)
Ignoring expenses
b)
Impulse spending
c)
Using a budget app
d)
Skipping savings
15.
A budget is defined as:
a)
A plan to earn more money
b)
A plan for expected income and expenses
c)
A savings account
d)
An investment strategy
16.
Which of the following is NOT a key component of a household budget?
a)
Income
b)
Expenses
c)
Credit Score
d)
Savings
17.
Which of the following is a function of money?
a)
Creating laws
b)
Medium of exchange
c)
Voting
d)
Regulating economy
18.
Discretionary spending refers to non-essential expenses.
a)
True
b)
False
19.
In the 50/30/20 budgeting method, what percent goes to wants?
a)
0.5
b)
0.3
c)
0.2
d)
0.1
20.
When inflation increases and wages stay the same, purchasing power:
a)
Increases
b)
Decreases
c)
Remains unchanged
d)
Doubles
21.
Which budgeting method divides money into physical categories using cash?
a)
Zero-Based Budgeting
b)
50/30/20 Rule
c)
Envelope System
d)
Savings Plan
22.
What is one major reason people open a savings account?
a)
To earn interest on money saved
b)
To avoid taxes
c)
To invest in stocks
d)
To apply for credit
23.
What is a benefit of using a credit union over a traditional bank?
a)
Higher profits for shareholders
b)
Better ATM access
c)
Member-focused services
d)
More international branches
24.
What type of account is best for everyday purchases?
a)
Savings account
b)
Money market account
c)
Certificate of deposit
d)
Checking account
25.
Which fee is commonly charged for using an ATM outside your bank's network?
a)
Maintenance fee
b)
Overdraft fee
c)
ATM fee
d)
Loan origination fee
26.
Which account generally earns the highest interest?
a)
Checking account
b)
Savings account
c)
High-yield savings account
d)
Money market account
27.
What is compound interest?
a)
Interest earned on the initial deposit only
b)
Interest charged on loans
c)
Interest earned on both the principal and previous interest
d)
Bank fees
28.
What is the 50/30/20 rule?
a)
Spending 50% on savings, 30% on wants, 20% on needs
b)
Spending 50% on needs, 30% on wants, 20% on savings
c)
Saving 50% of income, 30% for emergencies, 20% for fun
d)
Spending 30% on needs, 50% on wants, 20% on savings
29.
Which financial product is a form of debt investment?
a)
CD
b)
Bond
c)
Checking account
d)
Savings account
30.
Which type of bank account usually allows the fewest monthly transactions?
a)
Checking
b)
Money market
c)
Savings
d)
Certificate of Deposit
31.
Why do banks charge fees?
a)
To make savings easier
b)
To pay customer salaries
c)
To cover service costs and make profits
d)
To give away bonuses
32.
Which of the following typically does NOT earn interest?
a)
Savings account
b)
Money market account
c)
Checking account
d)
CD
33.
Which document is typically needed to open a bank account?
a)
Resume
b)
School ID
c)
Proof of address
d)
Social media profile
34.
What does ‘liquidity’ refer to in financial terms?
a)
How often money is taxed
b)
The ability to get a loan
c)
How easily you can access your money
d)
How money grows
35.
Which of these is NOT a benefit of having an emergency fund?
a)
Less stress during emergencies
b)
Ability to invest in stocks
c)
Reduced need for credit
d)
Increased financial stability
36.
What is the typical purpose of a Certificate of Deposit (CD)?
a)
Daily purchases
b)
Emergency cash
c)
Earn higher interest for a fixed term
d)
Pay off credit cards
37.
Why is saving early important?
a)
Interest rates decrease over time
b)
You will need less money later
c)
Compound interest has more time to grow your savings
d)
It reduces loan amounts
38.
Which of these is considered a short-term savings goal?
a)
Saving for retirement
b)
Buying a home
c)
Saving for a vacation
d)
College fund
39.
What is one feature of a money market account?
a)
Unlimited transactions
b)
Lower interest than checking
c)
Higher interest and limited withdrawals
d)
Only available to businesses
40.
What kind of account is best for storing emergency funds?
a)
401(k)
b)
Savings account
c)
Credit card
d)
Investment account
41.
What is the main difference between banks and credit unions?
a)
Banks offer fewer services
b)
Credit unions are member-owned
c)
Banks charge fewer fees
d)
Credit unions are for-profit
42.
How does advertising typically affect spending habits?
a)
Encourages saving
b)
Promotes impulse buying
c)
Helps build credit
d)
Improves budgeting
43.
Why might someone use automatic savings tools?
a)
To avoid taxes
b)
To increase spending
c)
To save money consistently
d)
To earn bonus points
44.
What are monthly maintenance fees for?
a)
ATM withdrawals
b)
Maintaining account operations
c)
Loan processing
d)
Fraud prevention
45.
Which of these is a good strategy to avoid bank fees?
a)
Open multiple accounts
b)
Use out-of-network ATMs
c)
Maintain minimum balances
d)
Write checks often
46.
What should you ask your bank before opening an account?
a)
What their logo looks like
b)
Their stock value
c)
What fees and services are available
d)
What music plays in branches
47.
Credit unions are for-profit institutions.
a)
True
b)
False
48.
Compound interest helps your savings grow faster than simple interest.
a)
True
b)
False
49.
You need a credit score to open a checking account.
a)
True
b)
False
50.
All bank accounts earn interest.
a)
True
b)
False
51.
Setting specific savings goals can improve your motivation to save.
a)
True
b)
False
52.
Emergency funds should cover 6–12 months of expenses.
a)
True
b)
False
53.
Banks are typically owned by their members.
a)
True
b)
False
54.
Overdraft fees occur when you withdraw more than your available balance.
a)
True
b)
False
55.
A money market account usually allows unlimited transactions.
a)
True
b)
False
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