Name:

Period:

Budgeting Pre-Test
1.
a:

A spending plan for managing money during a given period of time is

A.
B.
C.
D.

Budget
Envelope system
Savings account
Roth IRA

2.

Jill pays $375.93 every month for her cay payment. This payment is a:
A.
Minimum balance
B.
Credit score
C.
Fixed expense
D.
Variable expense

3.

To pay yourself first means:

A.
Creating a plan for who you pay first, after yourself.
B.
Having a trusted person hold your money for you.
C.
Having a personal identification number on your accounts.
D.
Putting money in savings before paying bills.

4.

Which is a factor in developing a monthly financial budget?

A.
Insurance
B.
Entertainment
C.
Transportation
D.
All of the above

5.

A financial institution owned by its members that provides savings and

checking accounts and other services to its members is a(n):
A.
Bank
B.
Credit union
C.
Investment brokerage
D.
ATM

6.

What percent of your monthly income is the recommended amount to

be set aside for housing?
A.
40%-45%
B.
25%-30%
C.
15%-20%
D.
5%-10%

7.

If expenses were to exceed income on a spending plan, what would be

a financially smart solution?
A.
Decrease expenses
B.
Use a credit card more often
GFL Standard 3 Objective 1 Quiz Page 1

C.
D.

Earn less income

Increase purchases

8.

Which of the following is a control method for spending plans?

A.
Envelope system
B.
Spending plan template
C.
Check register system
D.
All of the above

9.

When items are bought on credit and paid for over a long period of
time, the cost to the buyer:
A.
Is the same as if the items were bought with cash.
B.
Is less than if the items were bought with cash.
C.
Is more than if the items were bought with cash.
D.
Depends on the method of payment.

10.

A federal government agency that insures deposits and banks is the:

A.
UCEA
B.
FDIC
C.
FAFSA
D.
FREA

GFL Standard 3 Objective 1 Quiz Page 2