This quiz works best with JavaScript enabled. Home > Finance > Management > Money Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Management Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Based on your interests, skills, training and job availability, it is important to choose ..... A) A credit card. B) A career path. C) A household budget. D) A bank. Show Answer Correct Answer: B) A career path. 2. What you give up when you make a financial decision is the ..... A) Instant gratification. B) Opportunity cost. C) Opportunity benefit. D) Delayed gratification. Show Answer Correct Answer: B) Opportunity cost. 3. What does a credit score measure? A) How likely a person is to use overdraft. B) How likely a person is to pay off a loan. C) How likely a person is to save large amounts of money. D) How likely a person is to make bad investments and lose money. Show Answer Correct Answer: B) How likely a person is to pay off a loan. 4. Expenses that do not necessarily stay the same, such as groceries A) Fixed. B) Variable. C) General. D) Fair. Show Answer Correct Answer: B) Variable. 5. What is an expense? A) Money spent. B) Money earned. C) Money saved. D) Money invested. Show Answer Correct Answer: A) Money spent. 6. Tony borrowed money from the bank to buy a new house. A year later he lost his job and has started to not be able to make his house payments. This problem is known as what? A) Credit. B) Budget. C) Debt. D) Interest. Show Answer Correct Answer: C) Debt. 7. Cami Bartosz calculated that she owed taxes of $ 254 and had $ 278 withheld from her pay during the year. This would result in A) A refund of $ 278. B) A refund o $ 24. C) Additional taxes owed of $ 254. D) Additional taxes owed of $ 24. Show Answer Correct Answer: B) A refund o $ 24. 8. An example of a SMART Goal requiring a budget. A) Wanting to earn honor roll. B) Wanting to buy new furniture next month by saving $ 50 each check. C) Wanting to make a sports team. D) Wanting to wear jeans on Friday. Show Answer Correct Answer: B) Wanting to buy new furniture next month by saving $ 50 each check. 9. The biggest source of household debt other than mortgages. A) Medical Bills. B) Credit Card Debt. C) Student Loans. D) Car Loans. Show Answer Correct Answer: C) Student Loans. 10. Name two types of expenses. A) Bills and Discretionary Income. B) Fixed and Random Expenses. C) Bills and Random Expenses. D) Fixed and Variable Expenses. Show Answer Correct Answer: D) Fixed and Variable Expenses. 11. You should make a list of your needs and wants so that you can ..... A) Prioritize your spending. B) Save your money. C) Open a bank account. D) Get a credit card. Show Answer Correct Answer: A) Prioritize your spending. 12. Money in the form of credit, permits a person to acquire goods and services now and pay for them later. A) Store of value. B) Measure of value. C) Medium of exchange. D) Standard of deferred payment. Show Answer Correct Answer: D) Standard of deferred payment. 13. Mrs. Jones' normal pay is 2, 500.25 a week. She called in sick but she had no sick leave. What is her pay this week? A) 2, 500.05. B) 2, 000.00. C) 1, 500.25. D) 2, 000.20. Show Answer Correct Answer: D) 2, 000.20. 14. Things that make life more interesting & fun, but you could live without them if you had to are known as A) Needs. B) Goals. C) Cash Flow. D) Wants. Show Answer Correct Answer: D) Wants. 15. A bill that comes the same time each month and doesn't change in amount is what type of expense? A) Variable. B) Fixed. C) Flexible. D) None of above. Show Answer Correct Answer: B) Fixed. 16. The first step in planning a budget is ..... A) The first step in planning a budget is. B) To review your spending and saving patterns. C) To set your financial goals. D) To estimate your income. Show Answer Correct Answer: C) To set your financial goals. 17. Why budget? A) Prevent debt. B) Plan for future. C) Save money. D) All of these. Show Answer Correct Answer: D) All of these. 18. Where does money come from? A) The money factory. B) The government prints it. C) College school boards. D) Parents to children, back to parents. Show Answer Correct Answer: B) The government prints it. 19. Saving $ 500 from this month's paycheck to pay for a new cell phone is what type of goal? A) Short term. B) Medium term. C) Long term. D) None of above. Show Answer Correct Answer: A) Short term. 20. Reasons for constructing a budget include A) Creating a spending plan. B) Creating a savings plan. C) Keeping track of debits and credits. D) All of the above. Show Answer Correct Answer: D) All of the above. ← PreviousNext →Related QuizzesFinance QuizzesMoney Management Quiz 1Money Management Quiz 3Money Management Quiz 4Money Management Quiz 5Money Management Quiz 6Money Management Quiz 7Money Management Quiz 8Money Management Quiz 9Money Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books