M1: Budgeting Quiz

Question 1

Which strategy best helps a famous brand company reach consumers?

A. Sending out mailings
B. Advertising nationally
C. Selling at trade shows
D. Marketing to small towns

Answer 1

B. Advertising nationally

Question 2

Which of these is the best reason for Lisa to monitor her bank account statements online or on her cell phone app?

A. To know how much money she has for budgeting
B. To ensure she’s paying her fair share in taxes
C. To determine the exact date she can retire
D. To organize when to pay bills

Answer 2

A. To know how much money she has for budgeting

Question 3

If you do not have a rental history or employment history, you may need a ____ to help qualify for an apartment

A. Paycheck cashing service
B. Loan
C. Renters insurance
D. Co-signer

Answer 3

D. Co-signer

Question 4

What is advertising used for? (Select all that apply)

A. Gathering data about potential consumers
B. Influencing consumer tastes and preferences
C. Increasing product awareness
D. Tracking product popularity
E. Promoting company awareness

Answer 4

BCE
B. Influencing consumer tastes and preferences
C. Increasing product awareness
E. Promoting company awareness

Question 5

Which is the best way to achieve long-term financial goals?

A. Save more money from net income
B. Eliminate short-term financial goals
C. Increase discretionary expenditures
D. Spend less money

Answer 5

A. Save more money from net income

Question 6

Which strategy best helps a famous branch company reach consumers?

A. Sending our mailings
B. Selling at trade shows
C. Advertising nationally
D. Marketing to small towns

Answer 6

C. Advertising nationally

Question 7

What is one benefit of purchasing saving bonds?

A. Saving bonds are purchased from commercial banks and guaranteed to increase in value

B. Saving bonds are purchased from the government and guaranteed to increase in value

C. Saving bonds are long term investments created to help first time home buyers

D. Saving bonds are short term investments backed by the government

Answer 7

B. Saving bonds are purchased from the government and guaranteed to increase in value

Question 8

What is the purpose of comparison shopping?

A. Reading reviews to make sure you feel good about buying a product
B. Determining whether you truly want a product
C. Ensuring you are not buying out of emotion
D. Attempting to find the best deal on a product

Answer 8

D. Attempting to find the best deal on a product

Question 9

The most economical way to purchase large items, such as furniture, is to buy with

A. A loan
B. Trade
C. Cash
D. A credit card

Answer 9

C. Cash

Question 10

Savings should be treated as another type of..
A. Net income
B. Tax
C. Expenditure
D. Gross income

Answer 10

A. Net income

Question 11

Gross income

Answer 11

What employees earn before taxes, benefits, and other payroll deductions are withheld from their wages

Question 12

Net income

Answer 12

The amount an individual or business makes after deducting costs, allowances and taxes

Question 13

Revenue v.s profit

Answer 13

Revenue: Income generated through business operations

Profit: Net income after deducting expenses from earnings.

Question 14

Expenditure

Answer 14

A purchase of products, goods, or services.

Question 15

A short-term financial goal might include savings for:
A. retirement
B. Purchasing a car
C. A down payment on a house
D. A child’s college fund

Answer 15

B. Purchasing a car

Question 16

To change gross income, someone would need to
A. Earn more money
B. Save more per month
C. Reduce deductions
D. Increase withholding’s

Answer 16

A. Earn more money (probably)

Question 17

The point at which it is not longer advantageous to buy in bulk is known as marginal ____

A. Benefit
B. Cost
C. Error
D. Tipping

Answer 17

A. Benefit

Question 18

The main purpose of buying car insurance is …

Answer 18

it protects you from financial disasters

Question 19

Besides the actual mortgage payment, what also factors into the monthly payment on a home?

A. Down payment
B. Maintenance costs
C. Property taxes
D. Renters insurance

Answer 19

C. Property taxes

Question 20

Your housing costs will likely be the most expensive monthly expense you have. You should try to keep your housing costs bellow ___% of your gross monthly income.

Answer 20

33%

Question 21

At what point does buying in bulk stop being a wise spending choice?

Answer 21

When the consumer buys more than what is needed.

Question 22

Which is an example of an income deduction:
A. Retirement savings
B. An unexpected salary cut
C. Wages lost due to illness
D. Vacation Budget

Answer 22

A. Retirement savings

Question 23

Building equity in a home is a good thing because:
A. A property taxes decrease as equity increases
B. Credit scores increase as equity goes up
C. Equity in a home increases the homeowner’s net worth

Answer 23

C. Equity in a home increases the homeowner’s net worth

Question 24

One important aspect of _____ expenses, is that you can change them by changing your lifestyle and spending habits
A. chronological
B. variable
C. periodic
D. fixed

Answer 24

Variable expenses

Question 25

Jim has saved $15,000. He wants to be sure that he is earning interest on his money and can add to their savings. He also wants to be able to access his money if the need should arise. Which type of account best suits Jim’s needs?

Answer 25

Money Market account

Question 26

Money Market Account

Question 27

Savings Bond

Question 28

Certificate of Deposit

Question 29

Checking Account

Question 30

Savings should be treated as another type of

Question 31

An income is measured as…

Answer 31

An amount received in a specific period: Weekly, Biweekly, or Yearly.