Name: 
 

17 Personal Finance


True/False
Indicate whether the statement is true or false.
 

 1. 
TRUE or FALSE?

Credit cards are an investment.
 

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 2. 
Which of the following is NOT an example of a fixed expense?
A.
mortgage payment
B.
rent payment
C.
car insurance payment
D.
groceries
 

 3. 
What is the MOST common method used in the U. S. to become a home owner?
A.
save for the purchase
B.
borrow most of the money
C.
get the house as a gift
D.
pay in cash
 

 4. 
What are the negative results of writing checks that total more than the money left in the bank account?
A.
The bank charges you a fee.
B.
The person or company to whom you wrote the check charges you a fee.
C.
You have to make the check good.
D.
all of the above
 

 5. 
Why is maintaining a good credit history important?
A.
A person with a poor credit history and low credit score may find it hard to get more credit.
B.
Credit scores measure how likely a person is to pay off a loan and credit score is based on a person’s credit history.
C.
Potential employers may check credit history before offering a job.
D.
all of the above
 

Multiple Response
Identify one or more choices that best complete the statement or answer the question.
 

 6. 
Which of the following are examples of variable expenses? Select ALL that apply.
 A.
mortgage payment
 B.
rent payment
 C.
concert tickets
 D.
groceries
 

 7. 
An investment is money spent on something with the goal of making more money in the future. Which of the statements below is TRUE of investing?
 A.
A financial investment involves putting money into things like stocks and bonds, CDs and mutual funds.
 B.
A real investment involves putting money into something physical such as real estate or equipment.
 C.
Both investments are totally safe.
 D.
Both investments have some level of risk that would cause loss of value.
 

 8. 
What are some of the consequences of not being able to pay off your credit? Select ALL that apply.
 A.
higher credit score
 B.
repossession of the thing bought on credit
 C.
lower credit score
 D.
bad credit report
 

Matching
 
 
In this chapter you learned the definitions for the terms shown below. Match the finance term to its definition.

FINANCE TERMS:
A.
Income
B.
Expenses
C.
Budget
 

 9. 

 a plan for how money will be used
 

 10. 

 money that is earned or received
 

 11. 

 money that will be spent
 
 
Below are 4 types of accounts covered in this chapter. Match the account type to its description.

ACCOUNT TYPE:
A.
investment account
B.
checking account
C.
savings account
D.
credit
 

 12. 

 a bank account which is most used to deposit pay checks and pay bills from
 

 13. 

 an account where money is deposited to earn more money over time
 

 14. 

 a bank account where money is set aside for emergencies or unexpected expenses
 

 15. 

 an account which allows a person to buy something and pay for it later, usually with interest added
 
 
Match the finance term below to its description.

FINANCE TERM
A.
interest
B.
charitable giving
C.
overdraft
 

 16. 

 money spent out of an account that is not in the account
 

 17. 

 money paid by a bank to the account holder for money saved
 

 18. 

 donating money or goods to help others
 



 
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