JA Finance Test Review

When a borrower receives something of value now and agrees to repay the lender at some date in the future, the borrower is

• using credit

• saving money

• gaining new income

• making an investment

Bethany wants to create a monthly budget. To do this, she will need to know

• the difference between bonds and stocks.

• her savings account's interest rate.

• her monthly income and expenses.

• the current inflation rate.

What is a risk of using credit cards?

• reducing income earned each month

• earning less on investments

• falling into unnecessary debt

• increasing the amount of taxes owed

Which answer choice BEST describes saving?

• setting aside money for future use

• loaning money to another individual

• earning money in exchange for work

• planning how to spend one's income

Dominick accepts a full-time position at a record store in his hometown. What expectations should Dominick have for this new job?

• He should expect to earn income in exchange for working around 20 hours per week.

• He should expect to earn interest in exchange for working around 20 hours per week.

• He should expect to earn income in exchange for working around 40 hours per week.

• He should expect to earn interest in exchange for working around 40 hours per week.

Darius wants to buy a new car. He has a well-paying job, but knows that he must save his money for awhile before he can afford the car. What should Darius do FIRST?

• . apply for a credit card

• establish a budget

• sell his old car

• get a different job

In which situation would obtaining a bank loan be MOST reasonable?

• . Marina is trying to avoid going into debt.

• . Max is looking to purchase his first home.

• Desmond is hoping to get a raise at his new job.

• . Daphne is trying to reduce her monthly expenses.

t is the difference between full-time and part-time employees?

• . Full-time employees work more hours per week and typically earn more in income.

• Part-time employees work more hours per week and typically earn more in income.

• . Full-time employees work more hours per week and typically earn less in income

• Part-time employees work more hours per week and typically earn less in income.

Fatima is preparing a personal budget to help better manage her income. What must Fatima balance when preparing her budget?

• interest and credit

• interest and saving

• . spending and credit

• . spending and saving

Jennifer and Damon earn the same amount of income each month and have similar expenses. Jennifer saves most of the money that she does not use for necessary expenses, while Damon spends his money on concert tickets and going to restaurants. What conclusion can be drawn based on this information?

• . Jennifer is less likely to receive a raise from her job.

• . Damon is less likely to accumulate unnecessary debt.

• Damon is more likely to be able to afford to make large purchases.

• . Jennifer is more likely to be prepared financially for emergencies.