Personal Finance 2

The amount of money that you owe to lenders is called what?

• bankruptcy
• credit
• debt
• interest

Which of the following does a person need to know to plan an effective budget?

• his or her credit score
• personal income
• statewide interest rates
• adjustable rate mortgages

When someone borrows a lender's money to make a purchase in exchange for paying that lender interest it is known as what?

• credit
• foreclosing
• investing
• savings

Which of the following is a characteristic of an effective budget?

• too much income
• investing more than you save
• expenses greater than your income
• spending less than your income

Retirement, college education, wedding, a nice trip, and a new truck are all what?

• reasons people save
• examples of undisciplined spending
• things bought on credit
• methods of investing

David wants to buy a new car.  Since the car costs more than the amount of money he has, David pays for half of the car out of his savings account and borrows the rest.  David now has what?

• budget
• debt
• investments
• savings

Which of the following MOST affects your ability to borrow money?

• your credit score
• your savings account
• your monthly income
• your political party

The amount of money you make each month is considered what?

• credit
• debt
• income
• interest

Barbara bought a $500 dress using her credit card.  By the time she finished paying back the credit card company, Barbara paid $575 for the dress.  The extra $75 was what?

• credit
• debt
• expenditure
• interest

Having a budget, investing in the future, and staying out of debt are ways citizens ______________.

• manage their money wisely
• influence government spending
• go bankrupt
• provide municipal revenue