Succeeding in the World of Work

Chapter 20: Managing Your Money

Managing Your Money


1.	Which of the following is an important thing to do when creating a budget?
		A)	make lists of things you want to buy now and in the future
		B)	put your goals in order of importance
		C)	estimate your income and expenses
		D)	all of the above


2.	Which of the following is an example of an expense?
		A)	wages from your job
		B)	interest on a savings account
		C)	rent
		D)	net earnings


3.	Which of the following is an example of a flexible expense?
		A)	entertainment
		B)	rent
		C)	car payments
		D)	insurance premiums


4.	What is something that can help you keep your financial records organized?
		A)	an accordion file
		B)	record-keeping software
		C)	a filing cabinet
		D)	all of the above


5.	What is one very safe way to keep important documents such as birth certificates?
		A)	store them in a fireproof box
		B)	store them in a file cabinet
		C)	store them where they will be easy to get to
		D)	keep them on computer in digital format


6.	What is a good way to cut your expenses?
		A)	increase your income
		B)	pack your lunch instead of eating out
		C)	work longer hours
		D)	stop paying taxes


7.	How should you treat your savings?
		A)	as a planned expense, just like rent
		B)	as something you contribute to after you pay your bills
		C)	as something that is used only for emergencies
		D)	as something you will do when you get older and have more income


8.	Which of the following is a good strategy for staying within your budget?
		A)	avoid major purchases
		B)	carry plenty of cash so you won't have to visit the ATM
		C)	think before you spend, and look for sales
		D)	buy with credit cards so you can track your spending


9.	What occurrence will increase your financial responsibility?
		A)	graduating from college
		B)	starting a new job
		C)	moving into your own apartment
		D)	all of the above


10.	How can inflation affect your budget?
		A)	by increasing the prices of things you need to buy
		B)	by increasing your income
		C)	by increasing your taxes
		D)	by increasing the number of sales on products you need


11.	When does a recession occur?
		A)	when businesses do not produce enough products to satisfy consumer demand
		B)	when businesses produce more goods than consumers can purchase
		C)	when prices gradually rise
		D)	when savings gradually decrease


12.	Which of the following is not a good source of help for money management problems?
		A)	financial magazines and newspapers
		B)	schools
		C)	government agencies
		D)	Internet chat rooms


13.	What should you do to manage your money during a recession?
		A)	keep spending to spur economic growth
		B)	stop paying off loans
		C)	cut back on unnecessary expenses
		D)	eat less


14.	What should you do once you have made a budget?
		A)	stick to it to the penny
		B)	use it as a guide, but fine-tune it to meet your needs
		C)	stop keeping track of your spending because your budget will do it for you
		D)	stop worrying about financial surprises


15.	Which of the following is an example of a fixed expense?
		A)	life insurance premium
		B)	food
		C)	utilities
		D)	clothing