Money Sense Quiz 1

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| By Moneysenseforkid
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Moneysenseforkid
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Quizzes Created: 2 | Total Attempts: 530
Questions: 7 | Attempts: 277

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Money Sense Quiz 1 - Quiz

Questions and Answers
  • 1. 

    What question should you ask yourself before purchasing an item?

    • A.

      “Do I need it?”

    • B.

      “Do I have it?”

    • C.

      “Do I want it?”

    Correct Answer
    A. “Do I need it?”
    Explanation
    The question "Do I need it?" is the most important question to ask before purchasing an item. This question helps evaluate whether the item is necessary or if it can be considered a want or desire. By asking this question, one can determine if the item is essential for their needs or if it is an unnecessary expense. It encourages thoughtful and mindful purchasing decisions, preventing impulsive buying and potential regret.

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  • 2. 

    Purchasing   _____________ allows stores and supermarkets to get a lower price for their goods.

    • A.

      During sales

    • B.

      Good quality items

    • C.

      In bulk

    Correct Answer
    C. In bulk
    Explanation
    Purchasing goods in bulk allows stores and supermarkets to get a lower price for their goods. This is because buying in large quantities often comes with discounts or wholesale prices from suppliers. By purchasing in bulk, stores can save money on the cost per unit and pass on those savings to customers. Additionally, buying in bulk helps to ensure that there is enough stock available to meet customer demand, reducing the risk of running out of popular items.

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  • 3. 

    Savings in the bank yield  ______________.  

    • A.

      Expenses

    • B.

      Interest

    • C.

      Salary

    Correct Answer
    B. Interest
    Explanation
    Savings in the bank yield interest. When individuals deposit their savings in a bank, the bank uses those funds to provide loans and other financial services. In return for depositing their money, the bank pays interest to the account holders. This interest is a percentage of the amount deposited and serves as a reward for keeping the money in the bank. Therefore, savings in the bank generate interest earnings for the account holders.

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  • 4. 

    My bank pays me 0.1% annual interest on my savings account.  If I deposit $100 into my savings account, it becomes ________ after 1 year

    • A.

      $110

    • B.

      $101

    • C.

      $100.10

    Correct Answer
    C. $100.10
    Explanation
    If the bank pays 0.1% annual interest on the savings account, it means that for every $100 deposited, the account will earn $0.10 in interest over the course of a year. Therefore, after one year, the $100 deposit will become $100.10.

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  • 5. 

    Which of the following is what we should do with our total monthly savings?

    • A.

      Put it in a bank

    • B.

      Keep them under our bed

    • C.

      Stock up on all the goods we need

    Correct Answer
    A. Put it in a bank
    Explanation
    Putting our total monthly savings in a bank is the recommended option because it offers several benefits. By depositing our savings in a bank, we can ensure the safety of our money as banks have security measures in place. Additionally, the money deposited in a bank earns interest, allowing it to grow over time. This can help us save more and achieve our financial goals in the long run. Moreover, keeping our savings in a bank makes it easily accessible whenever we need it, providing convenience and flexibility.

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  • 6. 

    When a person has no more savings and is unable to pay his debts, he is  _________________.

    • A.

      Poor

    • B.

      Bankrupt

    • C.

      A spendthrift

    Correct Answer
    B. Bankrupt
    Explanation
    When a person has no more savings and is unable to pay his debts, he is considered bankrupt. Bankruptcy is a legal status indicating that an individual or organization is unable to repay their debts to creditors. It is a financial state where one's liabilities exceed their assets and they are unable to meet their financial obligations. Being bankrupt often leads to severe financial consequences and may require legal intervention to resolve the debts.

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  • 7. 

    Inflation  ________________________.

    • A.

      Takes away our money

    • B.

      Causes money to fall in value

    • C.

      Increases the value of items

    Correct Answer
    B. Causes money to fall in value
    Explanation
    Inflation refers to the general increase in prices of goods and services over time. When inflation occurs, the purchasing power of money decreases, meaning that the same amount of money can buy fewer goods and services. This is because as prices rise, the value of money decreases. Therefore, inflation causes money to fall in value.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 07, 2011
    Quiz Created by
    Moneysenseforkid
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