Personal Finance - Quarter 1/3 Review

Budgeting

Financial Tasks

Income/Savings

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Everything Personal Finance

100

The zero-based budget is the best method of budgeting because:

A. This type of budget is less complicated than other types of budgets

B. The zero-based budget ensures that every dollar you make is assigned a specific purpose

C. A zero based budget allows less money for wants

D. Sticking to a zero-based budget requires less discipline

The zero-based budget ensures that every dollar you make is assigned a specific purpose

100

The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) keep your money in the bank insured up to ______ per account.

A. $250

B. $2,500

C. $25,000

D. $250,000

100

The only place you should keep your emergency fund money is...

A. A savings account or money market account.

B. A safe in your bedroom

C. A Roth IRA

D. An envelope in a safe place

A. A savings account or money market account.

100

Rent is a:

A. Variable expense

B. Fixed expense

C. Intermittent expense

D. Discretionary Expense

B. Fixed expense

100

Compound interest is:

A. Earning interest on interest

B. Not good for investing

C. Only earning interest once

D. Losing interest on investments

A: Earning Interest on Interest

200

Which of the following is NOT a component of a budget?

A. Credit score

B. Saving

C. Income

D. Giving

A: Credit Score

200

A debit card, ATM access, payroll direct deposit, and checks are basic features of ____________.

A. A money market account

B. Online banking

C. A savings account

D. A checking account

200

What kind of money counts as income?

A. Only the money you make at your job

B. All money that you receive, including money from your job and gifts like birthday money

C. Money in your savings account

D. Only money deposited into your bank account

B. All money that you receive, including money from your job and gifts like birthday money

200

Identify "7" on the check

Routing Number

200

You need to track everything that involves money, including . . .

A. Your friend’s clothing budget for the month

B. Debit card purchases, third-party app transactions, and ATM withdrawals

C. All of the sales that are currently happening

D. The latest retail store credit card offers

B. Debit card purchases, third-party app transactions, and ATM withdrawals

300

What does a budget show you?

A. How much you need to save

B. How much money you plan to come in and go out during the month

C. How much money you need to earn

D. How much money you spent last month

B: How much money you plan to come in and go out during the month

300

With certificates of deposit (CDs), you have to pay a penalty for __________.

A. Withdrawing your money early

B. Depositing money into the account

C. Creating a savings account

D. Using an ATM

A. Withdrawing your money early

300

The first step you should take when you want to make a large purchase is . . .

A. Ask your parents to loan you the money with low interest

B. Get a new credit card

C. Decide how much you'll need to save and the time frame you want to save it in

D. Sell something and use the proceeds

C. Decide how much you'll need to save and the time frame you want to save it in

300

Car repairs are a:

A. Fixed expense

B. Variable expense

C. Discretionary expense

D. Intermittent expense

D: Intermittent expense

300

What are expenses that remain the same from month to month?

A. Variable

B. Fixed

C. Intermittent

D. Discretionary

B: Fixed

400

Going to the movies is an example of what types of expenses?

A. Intermittent and variable

B. Discretionary and variable

C. Discretionary and fixed

D. Intermittent and fixed

B. Discretionary and variable

400

Verifying your bank's online account statements for accuracy is called __________.

A. Reconciling your account

B. Adjusting your budget

C. Debit card fraud

D. Direct deposit

A. Reconciling your account

400

Which two habits are the most important for building wealth and becoming a millionaire?

A. Working a high-paying job and relying on a trust fund

B. Always paying off your credit card on time and putting extra money into a retirement account

C. Investing into the right stocks and using a private accountant

D. Consistently investing money and patience to give it time to grow

400

Online bill pay allows you to make payments to to whomever you wish without having to write a check and send it in the mail.

A. True

B. False

A. True

400

The interest rate on a savings account determines . . .

A. How much money you need to have to open the account

B. How much you will pay the bank to manage the account

C. The amount of time your money will be in the account

D. How quickly your money will grow over time

500

Which of these would count as a legitimate reason to use your emergency fund?

A. You forgot to budget for your mom's birthday gift

B. You have a fancy event coming up but you already spent all of your Clothing budget category

C. The smartphone you've wanted just went on sale

D. Your car battery died

500

Which of the following is a consequence of overdrawing your checking account?

A. Stress from money management

B. Overdraft fee from bank

C. Bounced check-fee from the store

D. All of the above

500

Instead of borrowing money for large purchases, you should set money aside in a(an) ____________ over time and pay with cash.

A. Emergency fund

B. Credit card fund

C. Sinking fund

D. Mortgage fund

C: Sinking Fund

500

Why should interest earned not be a factor with your emergency fund?

A. Inflation can eat up the interest earned

B. The emergency fund is not intended to grow wealth

C. Interest earned accounts at a bank earn a high interest, therefore not a concern