Financial Literacy Review

What are the three types of expenses?

• find, spend, and save

• fixed, shared, and spent

• find, value, and periodic

• fixed, variable, and periodic

What is profit?

• a withdrawal from your savings account

• the difference between the amount of money earned and the amount of money spent

• a wise person

• the cost of doing business

Which information is okay to share on the internet?

• your mother's maiden name

• your social security number

• your home address

• your favorite food

What is the difference between a fixed expense and a variable expense?

• a fixed expense is a different amount of money every month and a variable expense is the same amount of money every month

• a variable expense is a different amount of money every month and a fixed expense is the same amount of money every month

• there is no difference

• a fixed expense is for home repairs and a variable expense is for exercise

Why can it be risky to be an entrepreneur?

• many entrepreneurs like to perform dangerous stunts

• they may lose their money

• it's not risky at all to be an entrepreneur

• they might make too much money

What is the difference between active income and passive income?

• active income is easier than passive income

• passive income can be earned even when you are doing other things, while active income requires time

• there is no difference

If you make a late payment on a loan, you will have a _________.

• principal

• interest fee

• profit

• stock

When you are planning your budget, you should ______________.

• think about your wants first

• plan for your vacation first

• plan to spend most of it at the grocery store

• prioritize your needs and wants

What is the difference between a debit and a credit card?

• credit cards are usually blue, and debit cards are usually red

• a debit card must be paid back immediately

• overuse of a debit card can be dangerous

• a purchase on a debit card comes out of your checking account and a credit card is borrowing money

One reason a person would take out a bank loan would be to ___________.

• buy a new bike

• buy a new car

• to go to college

• both B and C