Unit 2 Personal Finance

Which of the following is a fixed expense?

• Grocery bills
• Rent
• Entertainment
• Clothing

What is the purpose of a budget?

• To avoid paying taxes
• To borrow money
• To manage income and expenses
• To increase expenses

Gross income is:

• Money set aside for savings
• Total earnings before deductions
• Money after deductions
• Income from investments

In a progressive tax system, who pays more taxes?

• Everyone pays the same
• Higher-income individuals
• Lower-income individuals
• Only businesses

Which of the following is a post-secondary option?

• Elementary school
• High school
• Middle school
• College

What does FDIC stand for?

• Federal Deposit Interest Corporation
• Federal Depository Investment Corporation
• Federal Debt Insurance Corporation
• Federal Deposit Insurance Corporation

What is a credit score?

• A measure of income
• A number representing creditworthiness
• A bank account balance
• A type of loan

Which is NOT a type of loan?

• Student Loan
• Credit Card
• Savings Account
• Mortgage

What does investing mean?

• Spending money
• Borrowing money from a bank
• Saving money for emergencies
• Putting money into assets to earn a return

What are certificates of deposit (CDs)?

• Investment stocks
• High-interest loans
• Types of credit cards
• Savings accounts with fixed terms