2023 Economics Final Study Guide

Making the right choices with your money—managing your money—involves knowing how . . .

• Planning, saving, spending, and investing will define your financial portfolio
• To make bank deposits using registers with the appropriate transactions listed
• Consumer decisions will affect your accounts
• Earning, budgeting, saving, spending, and giving affect your money

True or False: Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.

• True
• False

You should always make sure you have a …

• Budget
• Credit line
• Direct deposit
• Credit card

To gain an understanding of your personal finances, you should know . . .

• Your financial goals
• Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals
• How much income you have
• Your investment portfolio and your financial advisors’ contact information

A money principle to keep in mind is to live on ____________ you make.

• Exactly 20% below what
• More than
• The same as
• Less than

To know your net worth, subtract your liabilities from your ____________.

• Other liabilities
• Net income
• Previous net worth
• Assets

What is financial literacy?

• The content provided in bank statements for consumers
• The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
• The curriculum provided to college students about finances for their degrees
• The skills to read financial documents for personal finance classes, goals, and statements

Savers have a tendency to be . . .

• Strict with their purchases but spend money without a plan
• Strict with only purchases for themselves
• Strict with what they spend their money on, other than groceries
• Strict with their money and not spend any of it

What is the best way to avoid running out of money too quickly?

• You can make it a habit to plan and set goals for your money.
• You can avoid making any purchases for the next 30 days.
• You can put your money in a safe place, like a bank, and not spend it.
• You can invest in college.

It is possible to pay for college with cash.

• True
• False