Belief/practice important to an individual

11. What is a tariff?

A tax on goods from other countries

How does gross pay (GP) differ from net pay (NP)? *Abbreviations for this test only.*

GP=total amount of $$ before deductions & NP=total $$ after

What is the definition of a major decision?

Choices that have long-term effects on a person's life

B) Extra money paid when you borrow or save

The following are benefits to creating a spending plan except:

Encourage individuals to spend more money

To use an ATM & debit card safely, follow the following tips except:

Keep your bank account info in your purse or wallet

Portion of income not spent to purchase needed/wanted items

What does it mean to reconcile an account?

Balance checkbook to match balance statement

The following elements describe a SMART goal:

Specific, Measurable, Attainable, Realistic, Time Bound

Money lent to an individual trusting it will be paid back

What is the purpose of a budget?

B) To plan how to spend and save your money

Which step is not part of the decision making process?

Decide without considering consequences

A) Money you borrow and pay back with interest

Which of the following is not a characteristic of a money market account?

$ placed in money market account, must stay for min. time

What is an occupation?

A wide category of jobs with similar characteristics

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Financial Literacy class

24 termsStudBud Administration33 plays

Pre-Test for Personal Finance

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Questions 24

Answers

1
10. What is inflation?
A) When prices go up over time
C) When you earn more money
D) When stores have sales
B) When everything gets cheaper
2
What is a value?
Beliefs/practices shared and agreed upon by people
Thoughts created independently w/ no external influnce
Belief/practice important to an individual
Ideas that individuals are born w/ & not influenced
3
11. What is a tariff?
A tax on goods from other countries
A type of job
A bank fee
A store discount
4
How does gross pay (GP) differ from net pay (NP)? *Abbreviations for this test only.*
GP=total amount of $$ before deductions & NP=total $$ after
GP comes the 1st of month & NP comes the 15th of month
NP=total amount of $$ before deductions & GP=total $$ after
GP shows personal info & NP does not
5
What is the definition of a major decision?
Made on a day-to-day basis without a lot of thought
Choices that have long-term effects on a person's life
May become a habit
The process of identifying personal interests
6
9. What is interest?
A) A fun activity
D) Another word for allowance
C) A type of account
B) Extra money paid when you borrow or save
7
The following are benefits to creating a spending plan except:
Encourage individuals to spend more money
Help individuals meet financial goals
Track income & expense
Help individuals live within their income
8
14. Why do prices sometimes go up at the store?
It’s a holiday
Because kids like spending more
Inflation and supply problems
Stores want to be rich
9
To use an ATM & debit card safely, follow the following tips except:
Memorize the PIN & keep in hidden
Report lost or stolen debit/ATM cards immediately
Change PIN if it is suspected someone else knows it
Keep your bank account info in your purse or wallet
10
What is savings?
Money spent on wanted items only
Portion of paycheck used to provide public goods/services
Portion of income not spent to purchase needed/wanted items
Money spent on necessary items only
11
The following are advantages of using a credit card except
Eliminate the need to carry large amounts of cash
Convenient
Useful for emergencies
Tempting to overspend
12
The following are all examples of needs except:
Designer Clothes
Shelter
Water
Food
13
What does it mean to reconcile an account?
Balance checkbook to match balance statement
Pay outstanding transactions
Track Check 21 transactions
Deposit income & record withdraws
14
Which of the following choices is not an example of a savings tool?
Checking account
Savings account
Money market deposit account
Certificate of deposit
15
What is income?
Money saved
Money invested
Money spent
Money earned
16
What is the most common type of financial institution?
Bank
Credit Union
Savings & Loan institution
Mortgage broker
17
The following elements describe a SMART goal:
Short term, Mandatory, Attainable, Repetition, Timely
Short, Measurable, Action, Realistic, Time Bound
Specific, Monetary, Attainable, Recognize, Temporary
Specific, Measurable, Attainable, Realistic, Time Bound
18
What is credit?
A plastic card that holds pre-approved credit
A fee for borrowed money
The max amount of money that can be charged to a credit card
Money lent to an individual trusting it will be paid back
19
What is the purpose of a budget?
B) To plan how to spend and save your money
C) To borrow more money
D) To avoid earning money
A) To buy everything you want
20
Which step is not part of the decision making process?
Identify the problem
Decide without considering consequences
Evaluate the results
List alternatives
21
What is a bank loan?
B) A gift from the bank
C) Money you earn for doing chores
A) Money you borrow and pay back with interest
D) Free money from the government
22
Which of the following is not a characteristic of a money market account?
Withdraws may be completed with a debit card/writing checks
Allowed a limited number of transactions each month
Pays higher interest rate than a savings account
$ placed in money market account, must stay for min. time
23
The following information is included on a signature card except:
Social Security Number
Individuals printed & signed name
Address
Marital Status
24
What is an occupation?
A work role with a specific organization
A wide category of jobs with similar characteristics
A lifetime journey of using skills, knowledge, & experiences
The combo of activities, family, and personal interests

Financial Literacy class Flashcards | StudBud