Personal Finance Review

Question 1

Why do banks in the U.S. loan out money?

Accepted Answer

Help households & businesses buy goods and services they could not

Question 2

Allows customers to withdraw (take out) their money at any time.

Accepted Answer

Checking Account

Question 3

These are items such as houses, cars, food, appliances, clothes, etc.

Accepted Answer

Goods

Question 4

When you prepare a personal budget, it helps you...

Accepted Answer

Better understand your monthly spending

Question 5

Allows customers to securely store money while also earning interest.

Accepted Answer

Savings Account

Question 6

Additional money that a bank pays customers for not spending the deposited money.

Accepted Answer

Interest

Question 7

When a person starts their own business -People create goods and services to meet the consumer’s needs.

Accepted Answer

Entrepreneurship

Question 8

________________ are made up of people and play an important role in our economy.

Accepted Answer

Households

Question 9

A set amount of money. In exchange for selling labor, or working, people are paid an income. (“Money In”)

Accepted Answer

Income

Question 10

Provides goods and services, but not for a profit. Provides goods and services for the common good--all citizens benefit

Accepted Answer

Government

Question 11

Owned by an individual or group of people and not the government. They sell goods and services to earn a profit.

Accepted Answer

Private Businesses

Question 12

Money that you spend or give away (“Money Out”)

Accepted Answer

Expense

Question 13

How do households earn an income?

Accepted Answer

Selling their labor to businesses or the government

Question 14

Paying for things such as doctors, electricians, hair stylists, computer technicians, etc.

Accepted Answer

Services

Question 15

Which of the following is NOT a way businesses compete for consumers in a market economy?

Accepted Answer

Having cute/good looking products because the business likes it

Question 16

When you put your money in accounts: checking or savings.

Accepted Answer

Deposit

Question 17

What is a reasonable goal for a person's financially responsible personal budget?

Accepted Answer

Expense should be less than income

Question 18

Money that you put away or put in the bank to use later.

Accepted Answer

Savings

Question 19

Money a business makes from selling their goods and services.

Accepted Answer

Profit

Question 20

Provides a safe place for people and businesses to keep their money.

Accepted Answer

Banks

Questions 20