SS7E10 Personal Finance Test

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

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

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

You need to purchase a pair of sneakers since they are required for physical education class.  Which of the following is an example of effective decision making?

• You buy a pair of sneakers after considering fit, appearance, and cost.
• You buy the first pair of sneakers you try on at the first store you visit.
• You use your money to buy a pair of jeans instead of a pair of sneakers.
• You buy the most stylish and expensive pair of sneakers you find.

Which of the following allows people to increase their income?

• arguing with a boss
• applying for a credit card
• receiving more training
• opening a checking account

Which form of payment is the most expensive for the buyer?

• credit card
• debit card
• cash
• check