| A | B |
|---|
| To increase his net worth, Jackson could: | Increase his assets |
| Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be: | The balance on his credit card |
| Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier? | Maggie, because her net worth is higher than Samantha’s |
| o calculate her net worth Jordyn should use the following formula: | Assets – liabilities = net worth |
| Brett is creating a Statement of Financial Position and needs to list his assets. Which of the following should he NOT list as an asset? | Money in the paycheck he will receive next week |
| David made a mistake in his checking account recordkeeping and spent $10 more than he had deposited in his account. As a result, he can expect to be charged a(n): | Overdraft Fee |
| Common fees that may be charged by a depository institution include all EXCEPT: | Late fee |
| Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. What would you suggest she do? | Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and the amount spent is immediately deducted from her account. |
| Savings tools offered by depository institutions may earn interest. Which of the following statements is NOT TRUE about interest? | When earning interest, look for low rates. |
| Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account at a depository institution to keep her saved money safe. She has asked you for advice on which type of account would be best for her. What would be the best advice for Ariel? | Shop around for the depository institution with the highest interest rates for their savings |
| Sanjay is concerned about the safety of the money in his savings account. Which type of depository institution should he choose? | He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements. |
| Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students’ comments were based on fact while others were based on myths. Which aspect of security at a depository institution is NOT TRUE? | Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than $100,000. |
| A key difference between commercial banks and credit unions is that: | Commercial banks are ‘for‐profit’ and credit unions are ‘not‐for‐profit’ |
| Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his FIRST step? | Track his current income and expenses. If he has already created an Income and Expense |
| Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non‐contractual expenses. Which of his expenses best fit that category? | Gasoline, food, and entertainment |
| When is your spending plan complete? | Spending plans are always under revision so they are never complete |
| Diana and Aaron have decided to develop a spending plan to help them gain control over their finances. Which of the following statements is NOT TRUE about spending plans? | A spending plan includes items NOT usually included when creating a budget. |
| If expenses were to exceed income on a spending plan, what would be a financially smart solution? | Decrease expenses |
