Smart Shopping
Which of the following would be a considered a want rather than a need for most people?
A) Warm clothes in the winter
B) A place to live
C) A smartphone
D) Nutritious food
C) A smartphone
A ____ is usually paid on a biweekly or monthly basis for professional employment.
A) Salary
B) Hourly Wage
C) Stipend
D) Benefit
A) Salary
Which of the following is NOT an example of a job skill?
A) Attending work every day
B) Working well in groups
C) Being good with computers
D) Being creative
A) Attending work every day
The average price of milk increased from $3.00 last year to $3.50 this year. This is most likely due to:
A) Inflation.
B) The stock market.
C) Deflation.
D) The market basket.
A) Inflation.
What might be one reason why a stock becomes more valuable over time?
A) The industry is growing.
B) The company is well-managed.
C) There is a lot of demand for the product.
D) All of the above.
D) All of the above.
What is an opportunity cost?
The trade-off of making one choice and giving up a different choice.
Which of the following is the BEST reason to use cash for making purchases?
A) Getting more cash from an ATM machine is easy to do.
B) Keeping track of how much you have spent is simple.
C) Splitting bills with friends is easier.
D) Knowing what you have spent your money on is simple.
B) Keeping track of how much you have spent is simple.
Which of the following things should you do first when planning your career?
A) Apply for as many jobs as possible.
B) Have a mock interview with a family member or friend.
C) Make a list of your job preferences and skills.
D) Sign up for an internship.
C) Make a list of your job preferences and skills.
Why would you put money into a savings account?
A) To make frequent withdrawals at ATM's.
B) To earn interest on your money.
C) To access the money from this account with personal checks.
D) To easily access money from this account with a debit card.
B) To earn interest on your money.
When deciding how to invest your money, which of the following is LEAST important to know?
A) Whether or not deposits can be made online
B) When you will need to use the money
C) The expected rate of return on your investment
D) How risky the investment is
A) Whether or not deposits can be made online
You are creating a budget for your new business. What should you include?
All income and expenses.
What factor has the biggest impact on a credit score?
A) Having a variety of types of credit.
B) The amount of money you owe on your credit cards.
C) Your history of making payments on time.
D) The number of years that you have used credit responsibly.
C) Your history of making payments on time.
Shannon has been a member of her school's newspaper club for 2 years and attends writing workshops in her free time. Which career choice should she explore?
A) Web Content Developer
B) Museum Curator
C) Graphic Designer
D) Business manager
A) Web Content Developer
Aaron wants to open a savings account. Which account will grow his money the most?
Account 1: Interest rate 2%, interest compounded daily.
Account 2: Interest rate 1%, interest compounded daily.
Account 3: Interest rate 2%, interest compounded monthly.
Account 4: Interest rate 1%, interest compounded annually.
Account 2: Interest rate 1%, interest compounded daily.
What is a premium?
A) The amount you pay the health insurance company every month for coverage.
B) The amount you are personally required to pay before your health insurance covers your medical costs.
C) A fixed fee you pay for specific medical services.
D) The most you have to pay for health care in a full year.
A) The amount you pay the health insurance company every month for coverage.
Which of the following is a variable expense for many adults?
A) Their monthly cost of eating out at restaurants.
B) Their monthly rent payment.
C) The monthly payment on their car loan.
D) Their monthly payment for health insurance.
Their monthly cost of eating out at restaurants.
What is the best strategy to avoid paying interest on your credit cards?
A) Pay the minimum balance each month.
B) Pay the full balance each month.
C) Have credit cards from two different banks.
D) Make payments online.
B) Pay the full balance each month.
Which career is likely to earn the highest salary?
A) Hairdresser
B) Dentist
C) News anchor
D) Flight attendant
B) Dentist
A loss is when:
A) Revenue is greater than expenses.
B) Revenue is less than expenses.
C) Revenue is equal to expenses.
D) None of the above
B) Revenue is less than expenses.
________ are loans to a company or government for a set amount of time. They earn interest and are considered low-risk investments.
A) Stocks
B) Bonds
C) Mutual funds
D) Derivatives
B) Bonds
Your are worried about going over budget for the month. Which expense would you suggest is NOT a need?
A) Rent payment
B) Car insurance
C) Cable service
D) Groceries
C) Cable service
What is the problem with paying only your minimum credit card balance each month?
A) It lowers your credit score
B) You have to pay interest
C) The bank will cancel your credit card
D) All of the above
B) You have to pay interest
The opportunity cost of earning an advanced college degree is that:
A) You will earn more income during your career.
B) You will earn less money during the years that you are in college.
C) Some fields require a professional degree before you can begin working.
D) There may be a low supply of jobs in your professional field.
B) You will earn less money during the years that you are in college.
Which of the following best describes deflation?
A) A decrease in the cost of goods and services.
B) An increase in the cost of goods and services.
C) A decrease in purchases of goods and services.
D) An increase in purchases of goods and services.
A) A decrease in the cost of goods and services.
A ______ is a small piece of ownership in a company.
A) Stock
B) Bond
C) Mutual fund
D) Derivative
A) Stock