Personal Finance Unit Review Score:

1.    What type of money is used in the United States?

A Representative Money

B Fiat Money

C Commodity Money

2.    Checks are not cleared until the end of the business day.
A True

B False

3.    Which of these accounts has your money tied up in it the longest?

A Money Market Account

B Time Deposit / CD

C Savings Account

D Checking Account

4.    Checks are a form of Representative Money.

A True

B False

5.    What does it mean when we say money is a store of value?

A It has value no matter what.

B It is valuable because the government says it is.

C It has value because you can buy things with it.

D It retains its value when it is saved.

6.    Which of the following is the best example of a type of money that exhibits the
characteristic of durability?
A Sea Shells

B Dried Fish

C Tulip Bulds

D Precious Stones

7.    When your check bounces you can be charged a bad check fee.
A True

B False

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8.    Insurance is based upon the idea that if we pool our money, together we can
afford to pay for accidental costs of life. This is also called?
A Risk Diversification

B Risk Diverting

C Risk Aversion

D Risk Sharing

9.    Toni wants to buy a house so she needs to take out a loan. No bank will let her
take out a loan. Why might Toni not be granted a loan? Choose the best answer!!
A Because the banks don't lend out money for houses

B Because she has a bad credit score

C Because she doesn't have a job

D Because she appears as a risk to the banks

10.    Karla borrows $2000 from Sheba at an interest rate of 10%. after one year the
interest generated is $200. Karla makes no payments. After the second year the
interest generated is $200. With this information we know that the type of interest
on the loan is?
A Variable

B Complex

C Simple

D Compound

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