| #1 | Your total earnings before deductions
a). net pay b). gross earnings c). deductible redactions d). credit history |
b). gross earnings |
| #2 | Money subtracted from earnings
a). deductions b). creditors c). piecework d), loan |
a). deductions |
| #3 | An order written by a bank depositor that tells the bank to pay out money
a). canceled check b). check c). checking account d). gross check tax |
b). check |
| #4 | The portion of a checkbook used to record the checks written |
check register |
| #5 | A bank account that pays interest to customers in return for using their money |
savings account |
| #1 | People who lend money are called _____
a). Debters b). Compound checkers c). Certificate of Deposits d). creditors |
d). creditors |
| #2 | If you miss a payment on a credit card, you may have to pay __________, which is interest on top of the interest you already owe
a). interest b). deductions c). piecework d). compound interest |
d). compound interest |
| #3 | A check that has been paid out by the bank is a _______
a). deposit slip b). canceled check c). budget d). bank statement |
b). canceled check |
| #4 | A record of money put into an account |
deposit slip |
| #5 | What is an example of open-ended credit? |
A credit card that you pay a bill on once a month. |
| #1 | What is your credit history?
a). a record of how you've borrowed and repaid debts b). an order written by a bank depositor directing the bank to pay out money c). total earnings before deductions d). money subtracted from earnings |
a). a record of how you've borrowed and repaid debts |
| #2 | Payments that citizens are required to make to help pay the costs of government services are called ____ |
taxes |
| #3 | What is it called when you write a check but do not have enough money in your account when the depositor tries to cash the check? |
bounced check |
| #4 | What is a bank statement?
a). interest paid on top of interest already owed b). a record of how you have borrowed and paid back debts c). a check that has been paid by a bank d). a bank report that shows the condition of a depositor's account |
d). a bank report that shows the condition of a depositor's account |
| #5 | Give two reasons why successfully managing your income is important. |
Example Answers:
1). So you dont go broke
2). So you have money to spend on the things you need and want in order to make you satisfied with life |
| #1 | List at least three deductions that may be taken from a worker's gross earnings |
Example Answers:
-social security
-federal income tax
-city tax
-local tax
-property tax
-medicare |
| #2 | Why is it a good idea to keep money in a bank that is insured by the Federal Deposit Insurance Corporation (FDIC)? |
If the bank goes out of business, is robbed, or otherwise loses your money, the FDIC insures up to $250,000 of your money. |
| #3 | Going out to eat at a restaurant, buying new clothes, and paying for a family vacation can be classified as a _________ |
variable expense |
| #4 | A closed-end credit loan with stipulations on how much must be paid, how often, and for how long is an example of a ______________ |
fixed expense |
| #5 | List two ways that budget can be an important part of successful money management. |
Example Answers:
A budget lets you know how much money you have and how its being spent
A budget will prevent emergencies from causing financial difficulties for you
A budget can help you plan realistic financial goals for the future
A budget can help you grow your savings |
| #1 | What are the three "C's" banks usually use to determine whether to give someone a loan? |
Character
Capacity
Collateral
(And according to our financial expert Mr. McDaniel, Cash) |
| #2 | How do banks protect their employees from robbers? |
Silent alarms, time-vaults, police trained to know the location of banks in their district and arrive in under two minutes. |
| #3 | What is the main reason banks fail? |
Too many bad loans that are not paid back to the bank |
| #4 | Why do banks deny loans to people? |
poor credit history, not enough income, & lack of collateral |
| #5 | When planning a budget, is it better to estimate to underbudget or overbudget for entertainment expenses? Why? |
It is better to underbudget for entertainment because if you overbudget, you may be spending money that is needed on more important things such as food, transportation, rent payments, etc. Plus, if you underbudget for entertainment, you may save money that can be used later if not spent on entertainment. |
| Final Question | |
What is an example of a seasonal expense and how could you plan for these expenses in your monthly budget ? |
Example Answer:
Buying shotgun shells during duck season. You could plan for these expenses in your monthly budget by knowing what month you will probably need to spend money on the seasonsal expense and then estimating how much you will need to spend and then adding the estimated amount of the expense into your budget. |