Which of these is the LEAST important reason to save a given amount of money every month?

have your car washed and detailed by someone

What does "debt" mean?

money borrowed by person/company from a person/company/bank

Most debt is bad, but there is "acceptable debt." Which of these is NOT "acceptable debt?"

borrowing to pay for a trip when needing the money for bills

What does "investing" mean?

money used in hopes of gaining more in the future

What does "savings" mean?

money not spent on current expenditures (expenses)

What does "expenditure" mean?

money spent on a particular item

Which of the following is NOT a good reason to create a budget?

to find out how much money you make in a year

What does "budget" mean?

a plan for spending based on money earned

What does "bankruptcy" mean?

legal process related to not being able to repay debts

What does "interest" mean?

an additional amount of money paid to use borrowed money

Which of these is the best definition of "credit?"

money loaned to someone that must be paid back with interest

Which of the following is NOT a benefit of creating a budget?

can determine how much you make in a year

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Personal Money Management - GSE SS8E3

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Questions 15

Answers

1
Based on 4% interest, if you save $500/month from age 20 to age 60 you will have
about $200,000
about $600,000
about $450,000
about $300,000
2
Which of these is the LEAST important reason to save a given amount of money every month?
provide money for retirement
provide money for a down payment on a home
have your car washed and detailed by someone
provide money for emergencies
3
What does "debt" mean?
loaning someone money
an additional amount you pay to use borrowed money
money borrowed by person/company from a person/company/bank
the amount of interest paid over an entire year
4
Most debt is bad, but there is "acceptable debt." Which of these is NOT "acceptable debt?"
borrowing for an education (student loan)
borrowing to start a business
borrowing to pay for a trip when needing the money for bills
borrowing for a home (mortgage)
5
What does "investing" mean?
money a person earns in a year
money owed to a bank
money used in hopes of gaining more in the future
money spent on a particular item
6
What does "savings" mean?
money owed to a bank
additional money you pay when borrowing money
money not spent on current expenditures (expenses)
money spent on a particular item
7
What does "expenditure" mean?
money spent on a particular item
money a person earns in a year
money set aside for future use
money used in hopes of gaining more in the future
8
Which of the following is NOT a good reason to create a budget?
to find out how much money you make in a year
establish short-term saving opportunity to plan for big trip
monitor financial resources so you don't run out of money
establish long-term saving opportunity to plan for college
9
What does "budget" mean?
money set aside for spending in the future
money a person makes in a year
money used to pay for a particular item
a plan for spending based on money earned
10
What does "bankruptcy" mean?
closing your store in order to retire
owing your friend money
legal process related to not being able to repay debts
legal process related to not repaying your car loan
11
What does "income" mean?
money spent on a particular item
money set aside for future use
money a person earns in a year
money used to invest in companies in hopes of making more
12
What does "interest" mean?
an additional amount of money paid to use borrowed money
borrowing money from a person/bank
mortgage amount paid over an entire year
when a person loses all their money
13
Based on 4% interest, if you save just $100/month from age 20 to age 60 you will have
about $250,000
about $58,000
about $120,000
about $25,000
14
Which of these is the best definition of "credit?"
money loaned to someone that must be paid back with interest
money spent on a particular item
money borrowed by one person from another party
an additional amount you pay to use borrowed money
15
Which of the following is NOT a benefit of creating a budget?
gain increased financial freedom when in control of money
can better adapt to financial changes in case of emergencies
can determine how much you make in a year
can determine where money is wasted on unnecessary expenses

Personal Money Management - GSE SS8E3 Flashcards | StudBud