Money Matters

Which of the following is the amount charged as a percentage of the initial loan borrowed from a lender?

• Principal rate

• Interest rate

• Possession rate

• Rate of inflation

Ron opened the first McDonald's® in his small town after reading about the success of others in his state. This is an example of which way to enter into business?

• Started his own business

• Purchased an existing business

• Purchased a franchise

• Took over the family business

The __________ considers the weighted averages of a group of consumer goods and services.

• Aggregate supply

• Producer price index

• Aggregate demand

• Consumer price index

Which of the following defines opportunity cost?

• A good whose consumption decreases when income increases

• As the price of any good falls, the quantity demanded will increase

• What you are giving up or sacrificing by turning down one opportunity in order to take advantage of another opportunity

• Measure of the general responsiveness of quantity to change in price

Budgeting finances requires calculating __________ and __________.

• Inflation; taxes

• Utility; opportunity cost

• Income; expenses

• Investments; savings

Money can be saved and used in the future without rapidly losing its purchasing power. This describes which of the following basic functions of money?

• Store of value

• Standard of deferred payments

• Unite of accounts

• Medium of exchange

Which of the following allows customers to have their paycheck electronically deposited directly into their account?

• Online payment

• Electronic withdrawal

• Deposit slip

• Direct deposit

Budgets assist in reorganizing finances to reduce ________ or increase ________.

• Consistency; originality

• Problems; happiness

• Debt; savings

• Funds; expenses

Which of the following is NOT a step in reconciling a bank statement?

• Calling a banker to discuss deposits and withdrawals

• Matching each of the deposits in the records to those noted on the bank statement

• Going through the miscellaneous account debits and credits listed on the bank statement

• Matching all checks listed in the bank statement to the check register

Derek is paid $550 per week, but only brings home $375 due to deductions. Which of the following is Derek’s net earnings?

• $375

• $175

• $925

• $550