Financial Literacy Chapter 4 Test

Question 1

What software should b used 2 maintain fin records, that allows 4 easy updates & calculations?

Accepted Answer

Excel

Question 2

Fin goals should be set before personal goals bc your personal goals will be dependent on them

Accepted Answer

False

Question 3

A personal net worth state. shows a person’s cash inflows & cash outflows for a period of time

Accepted Answer

False

Question 4

If you spend less money on an item than you planned to spend, this is an unfavorable variance.

Accepted Answer

False

Question 5

A goal you expect to achieve by next year would be classified as a short-term goal.

Accepted Answer

True

Question 6

Standards against which progress is measured in reaching goals are called

Accepted Answer

benchmarks

Question 7

Software or a hardware device that filters information coming in to your computer is called a

Accepted Answer

firewall

Question 8

If you make $118 per week, what is your annual income?

Accepted Answer

$6,136

Question 9

A Internet scam - an e-mail is sent from someone posing as your bank asking for personal info?

Accepted Answer

phishing

Question 10

Which of the following would be considered a fixed expense?

Accepted Answer

rent

Question 11

When you create a personal budget, the second step in the process is to

Accepted Answer

plan the amount you will save

Question 12

Differences between planned income or spending and actual income or spending are called

Accepted Answer

variances

Question 13

A personal ____statement shows a person’s net worth based on his or her assets and liabilities.

Accepted Answer

net worth statement

Question 14

A financial plan should include

Accepted Answer

all of the above

Question 15

Although people’s financial resources are limited, their wants and needs are unlimited.

Accepted Answer

True

Question 16

Savings should be incl in your list of cash inflows when creating the personal cash flow state.

Accepted Answer

False

Question 17

Items for which you spend money on are called

Accepted Answer

expenses

Question 18

The amount of money a person has to spend after needs are met is called

Accepted Answer

discretionary income

Question 19

In a financial plan, your financial goals

Accepted Answer

describe howyou will pay for your personal goals

Question 20

Goals you wish to achieve in the next two to five years are

Accepted Answer

medium term

Question 21

All assets, or items of value, increase in value over time.

Accepted Answer

False

Question 22

Financial choices you make today will affect your finances & your wealth throughout your future

Accepted Answer

True

Question 23

Al has $300 in total assets & owes $150 on her credit cards. What is Al’s net worth?

Accepted Answer

$150

Question 24

Which of the following would represent a medium-term goal for a high school student?

Accepted Answer

buy a car in two years

Question 25

What goals should be set first personal or financial?

Accepted Answer

personal

Question 26

Benchmarks may consist of steps or specific actions to take.

Accepted Answer

True

Question 27

A(n) __________ is a spending and saving plan based on expected income and expenses.

Accepted Answer

budget

Question 28

Most people dont have enough resources to meet all their needs & want so they must make choices

Accepted Answer

True

Question 29

What should you do if your budget does not balance?

Accepted Answer

any of these

Question 30

The amount owed on your credit card is an example of a liability.

Accepted Answer

True

Question 31

A person whose annual salary is $18,000 earns how much monthly income?

Accepted Answer

$1,500

Question 32

The amount of money a person has to spend after needs are met is called

Accepted Answer

discretionary income

Question 33

Which of the following would not be included in a person’s listing of assets?

Accepted Answer

$13,000 car loan

Question 34

Your net worth can be computed as

Accepted Answer

assets minus liabilities

Question 35

Which of the following would be considered an asset?

Accepted Answer

savings account

Question 36

Contains per & fin goals u want to accomplish, w steps & a timeline for reaching these goals,

Accepted Answer

financial plan

Question 37

Which of the following would be considered a cash inflow?

Accepted Answer

net pay

Question 38

The amt u budgeted 2 spend on food 4 June was $500. The amt you actually spent was $455 This is

Accepted Answer

$45 favorable variance

Question 39

__________ are money and items of value that you own.

Accepted Answer

Assets

Question 40

Savings should be added to income when balancing the budget.

Accepted Answer

False

Financial Literacy Chapter 4 Test

Questions 40

Financial Literacy Chapter 4 Test

Questions 40