Name: ___________________________

Date: _________________

Class: ________

Money Matters Final Exam

Directions: Complete the below exam using the instructions provided before each section. DO NOT WRITE ON EXAM!!!!!
True/False: For each question write true or false in the blank space. If an answer is false, you must make the answer true
to receive full credit.
____ 1. One of the ways in which governments borrow money is through the selling of bonds.
____ 2. Interstate commerce refers to business transactions involving companies that do business only in one state.
____ 3. A patent protects the creative work of authors, composers, and artists.
____ 4. Governments can help businesses in many ways but not through loans.
____ 5. Intellectual property is tangible.
____ 6. Bill Clinton is on the $1 bill.
____ 7. One of the functions of government is to prevent unfair business practices.
____ 8. A contract must be written to be enforceable.
____ 9. OSHA was created by the U.S. Congress in 1971 to develop and enforce workplace safety and health rules.
____ 10. In our private enterprise system, the government's role is less extensive than in other economic systems.
____ 11. Positive credit history does not affect your credit score.
____ 12. 750 would be considered a poor credit score.
____ 13. A delinquent payment would have a positive impact on your credit score.
____ 14. There is no quick fix to damage on your credit report.
____ 15. A collection payment stays on your account for 7 years.
____ 16. Seashells can be used as an acceptable form of money.
____ 17. Medium of exchange can be used to buy goods or services.
____ 18. Money should be relatively scarce.
____ 19. Plastic money could be used as a current of exchange.
____ 20. Bananas keep its purchasing power over time.
Multiple Choice: Select the correct answer and write the letter in the blank space.
____ 21. Which of the following is not a characteristic on money described in the medium of exchange?
a. Durable

b. New

c. Portable

d. Divisible

____ 22. Which function keeps its purchasing power over time?
a. store of value

b. medium of exchange

c. unit of account

d. none of the above

___ 23. Which of the following is true about sales taxes?

a. The national sales tax percentage rate is 6%

b. The federal government will deduct it from your paycheck

c. You dont have to pay for tax if your income is very low

d. It makes things more expensive for you to buy.

____ 24. Which of the following statements best describes your right to check your credit history for accuracy?
a. Your credit record can be checked once a year for free.
b. You cannot see your credit record.
c. All credit records are the property of the U.S. Government and access is only available to the FBI and Lenders.
d. You can only check your record for free if you are turned down for credit based on a credit report.
____ 25. Business transactions involving companies in more than one state are referred to as ____.
a. intrastate commerce

b. interstate commerce

c. multiple state business

d. none of the above

____ 26. Suki wants to move into her own apartment after graduating from high school, but she is worried that she
wont be able to rent an apartment without significant credit history. What can Suki do to start using credit wisely?
a. Rent an apartment with a friend who will sign the lease
b. Apply for a store credit card
c. Apply for several major credit cards
d. Close her checking account to avoid bouncing a check
____ 27. An agreement to exchange goods or services for something of value is called a ____.
a. contract

b. bargain

c. copyright

d. market

____ 28. When individuals or companies create new products, they may seek to obtain ____.
a. a copyright

b. a contract

c. a patent

d. none of the above

____ 29. Which of the following agencies provide free credit reports for consumers?
a. Equifax, credit unions

b. Credit unions, your bank

c. Experian, Credit Reports Association

d. TransUnion, Experian

e. None of the above, you must pay a fee for any credit report
____ 30. Which of the following is a correct description of a copyright?
a. issued for 17 years

b. issued for inventions

c. lasts for 50 years only

d. continues for the life of the person receiving it, and beyond

____ 31. Who is on the $5 bill?

a. George Washington

b. Benjamin Franklin

c. Abraham Lincoln

d. Ulysses S Grant

____ 32. Which of the following can impact your credit rating?
a. Borrowing money from a friend to pay for lunch.
b. Living with your parents until you earn enough money to afford to rent an apartment
c. Paying cash for a used car

d. Making a late car loan payment

____ 33. Credit experts recommend that you check the status of your credit reports at least
a. Every time you apply for a loan or credit card.

b. When you apply for your first loan or credit card.

c. Once a year.

d. Once every five years.

____ 34. What is the sales tax rate in the state of Texas?
a. 8.25%

b. 6.25%

c. .0825%

d. . 0625%

____ 35. If I have to pay taxes for land. What type of tax am I paying?
a. land

b. federal

c. state

d. property

Matching: Write the letter of the correct match next to each vocabulary term.
____ 36. opportunity cost

a. an interest bearing account at a bank or other financial institution

____ 37. cash

b. the ability of money to buy goods and services

____ 38. value of money

c. the process of putting money someplace with intent of financial gain

____ 39. investing

d. interest on an investment is not reinvested, interest is earned on principle only

____ 40. bank

e. the giving of one benefit or advantage to gain another

____ 41. compounding interest

____ 42. savings
____ 43. simple interest
____ 44. trade off
____ 45. principal

f. money in the form of paper currency or coins

g. the original amount invested
h. the second-best alternative that must be given up when resource is scarce
i. financial institution that provides various products and services
j. earning interest on interest through reinvesting; result of compounding
k. expenses that cost the same amount every time

____ 46. Fixed Expenses

l. total amount of income from your wages, after any payroll deductions taken out

____ 47. Social Security Tax

m. any money you receive

____ 48. Short Term goal

n. one year to accomplish

____ 49. Financial Safety Net

o. what you spend money on

____ 50. Variable Expenses

p. total amount of income from your wages, before any payroll deductions

____ 51. Long Term Goal

____ 52. Budget
____ 53. Goal
____ 54. Expenses

q. expenses that fluctuate in amount; usually have more control over

r. fees collected by the federal government to support its programs; sent to the IRS
s. a plan for managing your money during a given period of time
t. Pay Yourself First Savings
u. Money taken out of paycheck by employer to pay for taxes, health insurance, etc

____ 55. Intermediate Goal

v. 6-8 months of savings set aside to cover your expenses should an emergency occur

____ 56. Federal Income Tax

w. under 3 months to accomplish

____ 57. PYF

x. something that you aim for

____ 58. Income

y. 3 6 months to accomplish

____ 59. Gross

____ 60. Net
Short Answer: In a paragraph of 5 7 sentences explain one or two concepts from the material covered this semester.
Make sure you have an introduction, supporting, and a concluding sentence.