Question 1

Why do people choose to pay for items with cash instead of using credit cards to pay for items?

Accepted Answer

Credit cards charge interest to balances on the card causing the person to pay a higher amount.

Answer

Paying with cash increases your ability to borrow money.

Answer

People who pay with cash usually have high skilled jobs.

Answer

People like to use cash instead of swiping their card.

Question 2

Why do people invest in stocks, businesses, and other options?

Accepted Answer

To make money

Answer

To flaunt their luxurious car, house, and hairdo.

Answer

To lose money

Answer

To increase stagflation

Question 3

Which BEST describes saving?

Accepted Answer

Setting aside money for future financial choices

Answer

Saving your credit score for a special purchase

Answer

Saving money through purchasing stocks and bonds

Answer

Spending money you do not have

Question 4

Why is it important to make personal budgets?

Accepted Answer

To make the best financial decisions with my limited income.

Answer

To determine whether or not you can invest in a new company.

Answer

To determine how much you spend on food and gas.

Answer

To try and make more money

Question 5

When a student receives money for their birthday, holiday, or chores; what is the money called?

Accepted Answer

Income

Answer

Interest

Answer

Credit

Answer

Taxes

Question 6

What two parts of personal finance make up a person's budget?

Accepted Answer

Income and expenses

Answer

401K and Bills

Answer

Savings and interest

Answer

Inflation and investment

Question 7

What is the difference between a person who works as a cashier at Chick-Fil-A and an attorney?

Accepted Answer

Chick-Fil-A employee performs a low skilled job while the attorney performs a high skilled job.

Answer

Chick-Fil-A employee gets to eat for free and the attorney must pay for their meal.

Answer

The attorney has less education compared to the cashier at Chick-Fil-A.

Answer

The attorney drives a BMW and the Chick-Fil-A employee drives a Toyota.

Question 8

What is a good reason for using a loan from a bank to cover an expense?

Accepted Answer

a car

Answer

a new video game

Answer

Atlanta Braves game

Answer

going out to eat

Question 9

What risk does a person assume when they use a credit card?

Accepted Answer

going to far into debt

Answer

it could increase the taxes a person owes

Answer

it can reduce your income

Answer

making less money on their investments

Question 10

What is the difference between investments and savings?

Accepted Answer

People who save will likely keep their money, while investments are risky and you could lose the money.

Answer

People earn more money from savings than if they invest in high risk financial choices.

Answer

Savings cannot be used for financial transactions while investments are guaranteed to be profitable.

Answer

People can only grow wealthy from investments not from savings.

Question 11

What is true about making an investment?

Accepted Answer

There is no guarantee the investment will be profitable.

Answer

It is less risky to invest than to open a savings account.

Answer

Investments always pay off.

Answer

Investments are guaranteed by the federal government.

Question 12

Why is it a good idea to have emergency funds?

Accepted Answer

To help with unexpected costs that may arise through the month/year.

Answer

To pay monthly expenses.

Answer

For a family vacation.

Answer

For a down payment on a vehicle.

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