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12 questions
In which category are a new car, designer clothes, and gaming systems?
wants
needs
values
income
Why is saving important?
because the future is unpredictable
because people need to buy goods and services to grow the economy
because protecting assets such as a house and vehicles is critical in case of accidents
because people need to support local banks and credit unions
Sarah was very upset when her new phone broke the week after she purchased it. In her anger, she went to the local phone store and yelled at the sales person who had nothing to do with it. Which characteristic of being a wise consumer did Sarah violate?
read labels and follow instructions
use products safely
complain effectively and refuse poor equipment
resist high pressure sales people
When Greg received his first paycheck, he was suprised to see it was much lower than expected. He had not considered the regular deductions that would be taken out of his check. The amount Greg received is referred to as:
gross income
net income
hourly wage
weekly wage
When Miranda opened her credit card bill, she was suprised to see that the amount she owed was more than the cost of the things she had purchased. What is the probable cause of this difference?
credit
debit
interest
equity
Sally is excited about her new job. The salary she was quoted for the position does not have deductions taken out of the amount. What type of income was Sally quoted to earn?
gross income
net income
hourly income
weekly income
Samantha is looking for an institution for her money management. She is looking for an account that pays interest on deposits, does not have check writing privileges, and has easy withdrawal access on demand. Which type of account would be best for Samantha?
checking account
certificate of deposit
savings account
mortgage
Money earned from saving accounts and investments is an example of:
a spending plan
income
expenses
a saving account
Fundamental beliefs or practices of personal importance should be placed in which category?
wants
needs
values
income
The newlyweds wanted to start their marriage being financially responsible. What tool could they use to keep track of where their money is going?
spending plan
income
expenses
savings account
Which method of payment most likely requires a personal identification number (PIN) to confirm electornic transfer of funds from an account?
credit card
debit card
cash
check
Low interest rates, no membership fees, and grace periods are important criteria to consider when selecting:
credit cards
savings accounts
mortgages
checking accounts
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