- 1. to set aside money for a later use.
A) Save
B) Income
C) Spend
D) Budget
- 2. a sum of money that people and businesses have to pay the government in return for public services.
A) Interest
B) Credit
C) Tax
D) Savings
- 3. to follow and note the course or progress of.
A) Sum
B) Calculate
C) Total
D) Track
- 4. 1A. Part of budgeting is tracking your income and comparing it to your _____.
A) Checking
B) Rent
C) Savings
D) Expenses
- 5. All of the following may be considered needs except
A) Rent
B) Bus Fare
C) Movie Ticket
D) Groceries
- 6. What is opportunity cost?
A) the fees that are paid for education
B) the tax that is paid on income
C) the interest paid on a long-term investment
D) the value of an alternative you give up
- 7. Rent and car insurance payments are both which type of expenses?
A) variable costs that are needs
B) fixed costs that are needs
C) fixed costs that are wants
D) variable costs that are wants
- 8. A consumer is someone who
A) buys something
B) offers a service
C) sells a product
D) makes something
- 9. Which statement about variable expenses is true?
A) Variable expenses include wants but not needs.
B) Variable expenses are easier to cut than fixed expenses.
C) Variable expenses should not be included in the budget.
D) Variable expenses include only large costly items.
- 10. What is the main purpose of a budget?
A) to find new sources of income
B) to differentiate between needs and wants
C) to keep track of cash flow
D) to determine the amount of taxes to be paid
- 11. Lola is saving for a vacation. She earns $960 from work and an extra $48 from child care. Her monthly expenses are $880. How much can she save this month?
A) $112
B) $48
C) $128
D) $32
- 12. Ellis's budget shows a problem. His weekly expenses average $10 more than his earnings. Ellis works 5 days a week and every day on his way to work, he spends $2.50 on hot chocolate. Will cutting out the hot chocolate help Ellis balance his budget?
A) No, Ellis will have to find other places to cut.
B) Yes, the amount he saves will balance his budget exactly.
C) Yes, and he will have some money left over.
- 13. Erica wants to buy a new dishwasher that costs $500. She has already saved $100. She earns $1,200 a month and her total monthly expenses come to $1,000. Erica is going to put all of her extra money each month into her savings account for the dishwasher. Assuming her expenses stay the same, how long will it take Erica to save enough money for the dishwasher?
A) one month
B) five months
C) three months
D) two months
- 14. a plan that details how money will be earned and spent.
A) Bill
B) Salary
C) Budget
D) Track
- 15. the money needed to pay for something.
A) Spend
B) Income
C) Purchase
D) Expense
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