Money Basics
What is a budget?
A. A type of vegetable
B. A kind of animal
C. A plan for how you will use your money
D. All of the above
C. A plan for how you will use your money
What is an ATM used for?
A) Watching movies
B) Getting cash, checking your balance, or depositing money
C) Reading the news
D) Applying for jobs
B) Getting cash, checking your balance, or depositing money
Why is networking important when trying to find job opportunities?
A. It helps reduce your taxes
B. It ensures you get paid more
C. It builds connections that may lead to referrals or job offers
D. It allows you to work less
C. It builds connections that may lead to referrals or job offers
What is the main reason for using a budget?
A. To pay off debts faster
B. To track spending and plan savings
C. To calculate taxes
D. To determine credit scores
B. To track spending and plan savings
What does a credit score represent?
A) How much money you have in your account
B) Your income level
C) How trustworthy you are with borrowing money
D) The number of credit cards you have
C) How trustworthy you are with borrowing money
Which is an example of income?
A) Buying groceries
B) Paying rent
C) Getting your paycheck
D) Using a coupon
C) Getting your paycheck
Which of the following best describes the term “inflation”?
A. A rise in unemployment rates
B. A general decrease in the prices of goods and services
C. A general increase in the prices of goods and services
D. An increase in the money supply with no economic effect
C. A general increase in the prices of goods and services
What does a bank do with the money you deposit into a savings account?
A. Stores it in a personal safe for you
B. Gives it back right away with more money
C. Uses it to make loans and investments
D. Sends it to the government
C. Uses it to make loans and investments
What is considered “earned income”?
A. Interest from savings
B. Salary from a job
C. Dividends from stocks
D. Capital gains from real estate
B. Salary from a job
What happens to the value of money during high inflation?
A. It increases
B. It becomes equal to gold
C. It decreases
D. It stays the same
C. It decreases
What is one benefit of using a debit card instead of a credit card?
A) You can borrow more money
B) You earn cash back
C) You are spending money you already have
D) You build credit faster
C) You are spending money you already have
A person who owns their own business is known as a:
A. Contractor
B. Freelancer
C. Entrepreneur
D. Intern
C. Entrepreneur
Which of the following best explains how inflation affects savers over time?
A. Inflation increases the value of money saved in a bank.
B. Inflation has no effect on money that is not invested.
C. Inflation decreases the purchasing power of saved money if interest earned is lower than the inflation rate.
D. Inflation guarantees that all prices will rise at the same rate as bank interest.
C. Inflation decreases the purchasing power of saved money if interest earned is lower than the inflation rate.
If your bank offers 3% annual interest compounded monthly, what does that mean?
A. You earn 3% each month
B. You earn 3% divided over 12 months, with interest added to the balance each month
C. You only earn interest on your original deposit
D. You lose 3% due to inflation
B. You earn 3% divided over 12 months, with interest added to the balance each month
Which of these would typically lead to passive income?
A. Working full-time at a retail job
B. Starting a freelance business
C. Investing in dividend-paying stocks
D. Delivering food for a rideshare app
C. Investing in dividend-paying stocks