Question 1

1. What do we call the money earned just by keeping money in the bank?

Accepted Answer

interest

Answer

invest

Question 2

Businesses often _____________. They could do this by paying to fix a broken machine.

Accepted Answer

invest

Answer

interest

Question 3

What does it mean to SAVE money?

Accepted Answer

setting money aside for later

Answer

spending it on things you want now

Answer

buying expensive toys

Answer

inventing new machines

Question 4

If you put money in a savings account in the bank, what happens to it?

Accepted Answer

It earns interest.

Answer

It can't be taken out.

Answer

The bank puts it in a piggy bank.

Answer

It is gone forever.

Question 5

Which is NOT a way a business can use money wisely?

Accepted Answer

It can buy lunch for all of its workers.

Answer

It can use cheaper resources.

Answer

It can buy machines that make goods faster.

Answer

It can fix broken machines.

Question 6

If it costs money to invent new ways to do things, why do businesses do this?

Accepted Answer

To make new and better goods to sell

Answer

To run out of money

Answer

To be the poorest business

Answer

To win science contests

Question 7

True or False: If I have saved a few coins, I should open a bank account.

Accepted Answer

False, bank accounts are for larger amounts of money.

Answer

True, bank accounts can be for less than $1.

Answer

Question 8

True or False: Businesses will spend more money if they choose different resources to use.

Accepted Answer

False: Businesses can choose cheaper resources and spend less money.

Answer

True: If a business changes its resources, it will spend more money.

Question 9

True or False: Money that you earn by doing chores is interest.

Accepted Answer

False, interest is money a bank gives you when you have an account.

Answer

True, Parents give their kids interest for doing chores.

Question 10

True or False: There are only two options with money you've earned: spend it or save it.

Accepted Answer

True: Buying and donating are ways to spend and investing is a way to save.

Answer

False: There are other things you can do that are not spending or saving.

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