Unit 8 Review

Question 1

What is the word that describes a country’s money?

Answer 1

Currency

Question 2

What are the two kinds of cash?

Answer 2

Coins & Bills

Question 3

What are three ways to pay for something?

Answer 3

Cash
Checks
Credit Cards

Question 4

What might you owe if you don’t pay off the full amount of a credit card bill in one month?

Answer 4

Interest

Question 5

Which should you use your money to pay for first: wants or needs?

Answer 5

Needs

Question 6

Explain the difference between wants and needs

Answer 6

• Wants are things thing that you want to get such as a toy

- Needs are things you need to live like food

Question 7

Is paper for a school notebook a want or a need?

Answer 7

A need

Question 8

What are some ways to spend less when you are buying something?

Answer 8

• Buy it when it is on sale
• Use a coupon
• Check a consignment shop
• Check out yard sales and flea markets

Question 9

Is it always best to buy the least expensive item?

Answer 9

No, because sometimes it is of less quality

Question 10

What are two characteristics of spending wisely?

Answer 10

1. buy on sale

2. only buy what you need

Question 11

If you know you want to buy a new video game, what can you do to make sure you save enough for it?

Answer 11

You set a goal and wait until you have enough money or you wait for it to go on sale

Question 12

Why might you save money in an emergency fund?

Answer 12

So they have enough money in case something unexpected happens

Question 13

What are three ways to save money?

Answer 13

• put your money in a piggy bank
• put your money in a savings account
• buy bonds from the US government

Question 14

What is a bonus of having a saving account or saving bonds?

Answer 14

The money in them will earn interest

Question 15

Do you have to have a lot of money to save?

Answer 15

No. Even saving a little every month adds up.

Question 16

What are some reasons people borrow money?

Answer 16

to buy a house or a car

Question 17

What is interest?

Answer 17

money that is paid to people for a bank account or savings bond

Question 18

What are savings?

Answer 18

money that people save for a rainy day

Question 19

What can happen if you spend all your savings?

Answer 19

You don’t have money when something unexpected happens

Question 20

What are some examples of income given in the book?

Answer 20

• Allowance

- Helping neighbors

Question 21

What are some examples of expenses?

Answer 21

• movie ticket

- eating out

Question 22

What types of income and expenses would be in your budget?

Answer 22

Income
- chores money

Expenses
- Roblox

Question 23

How do you calculate savings?

Answer 23

Income - expenses = savings

Question 24

Instead of listing every item you buy, you can add up expenses in categories. What are examples of spending categories

Answer 24

• Entertainment

- Food

Question 25

What is the difference between a recession and a depression?

Answer 25

Recession: when an economy stops growing for a short time Depression: when an economy stops growing for a long time

Question 26

What is considered a normal rate of unemployment?

Answer 26

5%

Question 27

Where can people buy and sell stocks?

Answer 27

a stock exchange

Question 28

Why is real estate an important part of the economy?

Answer 28

people put a lot of money into it

Question 29

How are governments funded?

Answer 29

taxes

Question 30

What term describes a general increase in prices?

Answer 30

Inflation