Unit 11 Ga Studies

In order for an individual to be able to cover all living expenses, which of the following must exceed spending?

• savings

• interest

• income

• credit

Placing money aside for a use in a later time is called

• saving

• spending

• loaning

• borrowing

When looking to purchase a home in the future, it is a good idea to

• increase short term spending

• take out a student loan

• place money into savings

• apply for a new credit card

Credit cards, home mortgages, and auto loans all charge the consumer what when used?

• interest

• income

• profit

• credit

When setting up a personal budget, besides income, which is the NEXT most important thing to consider?

• savings

• profit

• expenses

• interest

The annual salary one is paid for doing a job or providing a service is called one's

• profit

• interest

• savings

• income

A person who creates, organizes, and manages a business is called

• a profit

• a saver

• a stock market broker

• an entrepreneur

Which is an accurate definition of the term interest?

• money put aside for use at a later time

• the amount of money a bank charges on a loan

• the amount of money left over after expenses are subtracted

• money one is paid for doing a job or performing a service

Borrowing money, charging a purchase, and taking out a student loan are all examples of

• spending

• profit

• credit

• savings

Which is the BEST explanation for why people invest money?

• People invest because they hope their money will grow

• People invest because money in banks is too easy to access

• People invest because they are afraid banks will fail

• People invest because they believe investing is safer than saving