W!SE Test Unit 1 Money Review

A common name for US currency is:

• Green Backs

• Orange Backs

• Red Backs

• Yellow Backs

Store of value is a key function of our currency. Store of value is best defined by which of the following

• Money holds value over time, allowing you to save with confidence

• Replaces the barter system because it is accepted by everyone as payment

• Money is used as a standard to determine the value of goods and services

• A measurement of a number that shows the amount of something

Which of the following is NOT a characteristic of money?

• Durable

• Reliable

• Divisible

• Portable

The idea that US currency is given value by the faith that people have in it is to referred to as:

• Fiat Currency

• Gold Standard

• Representative Currency

• Commercial Currency

The money I receive BEFORE taxes/deductions come out is referred to as:

• Net Income

• Gross Income

• Complete Income

• Taxed Income

Which of the following provides an increase in assets or wealth?

• Having Capital Gains

• Running in a marathon

• Volunteering at a hospital

• Taking out a loan

Which of the following is the most common type of income?

• Paycheck

• Windfall income

• Overtime Pay

• Rental Property Income

Which of the following is a mandatory (required) deduction?

• Life Insurance

• Retirement Savings (401k)

• FICA Taxes

• Automatic Savings Account

The initial amount a lender loans a borrower is called...

• The Principal

• Loan Balance

• Finance Charge

• Annual Percentage Rate

Which of the following is the correct definition of interest rate?

• The cost of a loan or expected earnings on a savings account

• Characteristic used to describe the services money provides

• The original amount you borrow on a loan

• idea that money can be saved and used for a later time, and still have retained its value at that time