money that is borrowed and you have to pay interest on it

What are budgets? (Select all that apply)

Take account of every dollar you make, Estimate of how much money you will make in a set period of time, Take account of every dollar you spend, Estimate what you will spend your money on

Who is in charge of regulating (controlling) banks?

The national government, Individual states

What role does money play in someone’s long term happiness?

Money can buy happiness if you pay for experiences vs objects

What is the definition of Net Income

how much of your paycheck goes into your bank after taxes are taken out

What is the definition of Financially Stable?

having control over your finances

Define Fixed Expenses

bills that are the same amount every time

Why was the West known as the “Wild West?”

It was easy to get away with crimes in the West

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2025 Financial Literacy 7

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Questions 25

Answers

1
People make money from banks bec the bank pays them interest for allowing the bank to borrow and use their money
False
True
2
Define Loans
a bill that changes every time
a place to keep your money safe, save for the future, or borrow money
money that is borrowed and you have to pay interest on it
bills that are the same amount every time
3
What are budgets? (Select all that apply)
Take account of every dollar you make
Estimate of how much money you will make in a set period of time
Take account of every dollar you spend
Estimate what you will spend your money on
4
Which of the following is an example of a variable expense?
Energy bill
Rent
Car insurance
Car payment
5
Which of the following is an example of why the West was called the “Wild West?”
People would shoot each other in bars/saloons
All of these answers
Thieves and bandits would rob people, taking all of their money
People would shoot each other in the middle of the street
6
True or False: When making a budget you should prioritize your needs first
False
True
7
How can someone make more money?
Get a second job temporarily until you meet your goal
All of the answers
Get a job that pays more money
Get training to increase your skills and get a promotion/raise
8
Why would someone borrow money from the bank?
To buy a car
To buy a house
To start a business
All of the answsers
9
What is the definition of Gross Income
having control over your finances
total income before taxes
how much of your paycheck goes into your bank after taxes are taken out
how much money you make
10
Who is in charge of regulating (controlling) banks?
The national government
The president
Individual states
Russia
11
What role does money play in someone’s long term happiness?
Money can buy happiness if you pay for experiences vs objects
Money cannot buy happiness because even lottery winners become unhappy
Money can buy happiness because it can buy things that make you happy
Money cannot buy happiness because it can’t buy love
12
There was a strong police presence to keep the peace in the West, not the East which led to violence in the East
True
False
13
Who do banks borrow money from?
The Government
People
Other banks
The president
14
What is the definition of Net Income
having control over your finances
total income before taxes
how much of your paycheck goes into your bank after taxes are taken out
how much money you make
15
People keep money in banks because it's safer than keeping it at your house
True
False
16
Which of the following is an example of a fixed expense?
Groceries
Streaming subscriptions
Gas
Clothing
17
True or False: The more education you have, the less income you have
True
False
18
What’s the easiest way to save money?
Only buy clothes from thrift stores
Only make food at home
Make more money
Stop spending so much money
19
You do not need to know the difference between fixed and variable expenses for a budget
True
False
20
Being “financially stable” means having enough money to pay all your bills and expenses
True
False
21
Define Variable Expenses
bills that are the same amount every time
money that is borrowed and you have to pay interest on it
a bill that changes every time
a place to keep your money safe, save for the future, or borrow money
22
What is the definition of Financially Stable?
how much money you make
having control over your finances
how much of your paycheck goes into your bank after taxes are taken out
total income before taxes
23
Define Fixed Expenses
money that is borrowed and you have to pay interest on it
a bill that changes every time
a place to keep your money safe, save for the future, or borrow money
bills that are the same amount every time
24
It is easiest to budget for Fixed expenses
False
True
25
Why was the West known as the “Wild West?”
They had a lot of wild plants because they didn’t have any major cities
They had a lot of wild animals because they didn’t have any major cities
It was easy to get away with crimes in the West
It was hard to get away with crimes in the West

2025 Financial Literacy 7 Flashcards | StudBud