Refer to our Texas Go Math Grade 4 Answer Key Pdf to score good marks in the exams. Test yourself by practicing the problems from Texas Go Math Grade 4 Unit 6 Assessment Answer Key.
Texas Go Math Grade 4 Unit 6 Assessment Answer Key
Vocabulary
- budget
- financial institution
- fixed expenses
- interest
- loan
- profit
- variable expenses
Choose the best term from the box.
Question 1.
_________________ are expenses that occur regularly and the amount does not change.
Answer: Fixed expenses.
Question 2.
_________________ is the amount left after all the expenses are subtracted from the amount of money received from selling an item or service.
Answer: Profit
Question 3.
A _________________ is a business, like a bank, that collects money, keeps it safe, and provides money for people and businesses to borrow.
Answer: Financial institution
Question 4.
The money that is lent by a bank or other financial institutions is called a _________________ .
Answer: Bank
Question 5.
A _________________ is an organized plan for spending and saving money.
Answer: Budget.
Question 6.
_________________ are expenses in which the amount does change based on need or choice.
Answer: variable expenses.
Question 7.
The additional money paid by a borrower to a lender in exchange for the use of the lender’s money is called _________________ .
Answer: Interest.
Concepts and Skills
Question 8.
Amber receives a weekly allowance of $35. How could she budget her allowance among spending, saving, including college, and sharing? Complete the table.
Answer: $8.75 for each expense.
Explanation:
I divide $35 with 4 because there are 4 things she needs to save for. After dividing 35/4=$8.75.
For each expense, she could save $8.75 each week.
Question 9.
Describe the similarities and differences of fixed and variable expenses. Give an example of each type of expense and explain why you think the expense is the type of expense that it is.
Answer:
Similarities: Classifying costs as either variable or fixed is important for companies because by doing so, companies can assemble a financial statement called the Statement/Schedule of Cost Of Goods manufactured. This is a schedule that is used to calculate the cost of producing the company’s products for a set period of time. The COGM is then transferred to the finished goods inventory account and used in calculating the Cost Of Goods Sold on the income statement. By analyzing variable and fixed cost prices, companies can make better decisions on whether to invest in Property, Plant, and Equipment. For example, if a company incurs high direct labour costs in manufacturing their products, they may look to invest in machinery, which will reduce these high variable costs in exchange for more stable and known fixed costs. This decision should be made with volume capacity and volatility in mind as trade-offs occur at different levels of production. High volumes with low volatility favour machine investment, while low volumes and high volatility favour the use of variable labour costs.
Differences:
Fixed expense example:
Rent or mortgage payments: These payments cannot change up to a certain time.
If you pay for a gym membership or streaming services, for example, those costs might stay the same month to month.
Variable expenses examples:
Some variable expenses may not be recurring. For example, you may take vacations or trips two to three times a year. The amount you spend each time may vary, but you’re not paying for those expenses monthly.
Gas, health care expenses, clothing, etc are under variable expenses.
Question 10.
Explain why you pay back more than you borrow when you make a loan from a financial institution.
Answer:
Interest is the fee charged for the use of borrowed money. We have to pay interest for every $100 borrowed. That’s why we are paying back more.
For example, I have borrowed $500 from the bank as a loan with the interest of $5 for every $100 then I have to pay $525 to the bank.
Question 11.
What are some advantages and disadvantages of saving your money in a bank rather than at home in a piggy bank?
Answer:
Advantages:
1. Convenience: Saving your money in the bank is probably the easiest way to secure funds and contribute to your savings. The entire process is user-friendly and it’s very convenient to access your money.
2. Safety: There’s no denying that banks serve as one of the safest ways to protect your hard-earned money and profits. Suppose you invest a large sum of money in the stock market. The fear of losing that money is a reality, however the bigger the risk, the bigger the reward, as they say. With a savings account, your money is untouched and can even make money depending on the interest rate. Right now, it’s not going to be a lot as interest rates are super low.
Disadvantages:
1. Low Returns: your money that’s sitting in a savings account will earn interest. While it’s safer, there are better ways to grow your money, such as mutual funds. Due to COVID, interest rates have dropped to an all-time low, which is helpful if you’re buying a house or owe money. Not so much if you’re trying to make money.
2. Convenient to Spend: The convenience that was an advantage can also be looked at as a disadvantage. Easy access means a temptation to spend instead of saving. Part of financial health is knowing your limits and following the rules. It’s not worth it to take money out of your savings account unless you absolutely must.
Fill in the bubble completely to show your answer.
Use the table for 12-13.
Question 12.
Reagan listed her weekly expenses in the table at the right. She receives a $49 weekly allowance to pay for her expenses. How much of Reagan’s allowance does she budget for food for a week?
(A) $42
(B) $38
(C) $28
(D) $27
Answer: Option C is correct.
Explanation:
The allowance of Reagan weekly=$49
Her total expenses on savings, charity, fun=$8+$4+$9=$21.
We need to find out for food.
The amount she spends on food for a week=$49-$21=$28
Question 13.
Which statement is true when budgeting a weekly allowance among spending, saving, including for college, and sharing?
(A) The amount budgeted for spending is always the same as the amount budgeted for sharing.
(B) The total amount for all expenses must not be more than the weekly allowance.
(C) The amount budgeted for savings is always half the amount of the weekly allowance.
(D) The total amount for all expenses can be more than the weekly allowance.
Answer: Option B is correct.
Explanation: The expenses should not be more than weekly allowances because if expenses more, the savings will become less.
Question 14.
Arlen has several variable expenses that he pays every month. Which of the following is a variable expense?
(A) rent
(B) gas bill
(C) car payment
(D) loan payment
Answer: Option B is correct.
Explanation: Gas bill always varies from month to month.
Question 15.
Which is not the purpose of a financial institution?
(A) keeping money safe
(B) lending money
(C) borrowing money
(D) buying gas for your car
Answer: Option D is correct.
Explanation: Lending and borrowing are related to financial institutions. But buying gas for car is completely related to car.
Question 16.
Susan wants to save her money to buy a new computer that costs $800. She is considering the advantages arid disadvantages of saving her money at home or in a savings account at a hank. Which is an advantage of Susan saving her money in a savings account at a bank rather than at home?
(A) Susan would earn interest.
(B) Susan would not earn any interest.
(C) Susan could use the money to buy something else.
(D) Susan’s money may be lost.
Answer: Option A is correct.
Question 17.
Which situation shows a financial institution as a lender?
(A) Vicki saves her allowance in a savings account at a bank.
(B) Tim takes out a loan to buy a computer.
(C) Terry deposits a check into his bank account.
(D) Ivan opens a savings account at a bank.
Answer: Option B is correct.
Explanation: Taking a loan from a bank means it was giving the money to a person so the bank is a lender and Tim is a borrower.
Question 18.
Neil deposits $3,500 into his savings account at a financial institution. Which is the purpose of the financial institution in this situation?
(A) loaning Neil money
(B) keeping Neil’s money safe
(C) letting Neil pay off his credit card
(D) letting Neil buy a car
Answer: Option B is correct.
Explanation: One of the advantages of a savings account is keeping the money safe with high security.
Question 19.
In a table, Maxine kept track of her expenses for the month. Which is a fixed expense?
(A) Lunches
(B) Gas Bill
(C) Electric Bill
(D) Rent
Answer: Option D is correct.
Explanation: Rent comes under fixed expenses because it is constant for years.
Question 20.
Imid had a savings account at a bank. The account paid interest of $3.50 per $100. If Imid had $400 in the account, how much interest would he receive?
(A) $11.50
(B) $14.00
(C) $12.50
(D) $3.50
Answer: Option B is correct.
Explanation:
The amount Imid had in his savings account was $400
The rate of interest for every$100=$3.50
Interest:$3.50 for every $100 borrowed*4=$14
Question 21.
Mark sold three video games for $37.50 each. He bought the three games for $17.95 each. What was Mark’s profit from selling the three video games?
(A) $58.65
(B) $85.56
(C) $58.56
(D) $85.65
Answer: Option A is correct.
Explanation:
Mark sold three video games each=$37.50
The total amount he invested in video games was $37.50*3=$112.5
The rate of three games he bought each=$17.95
The total amount he invested in buying video games was $17.95*3=$53.8
Mark’s profit from selling the three video games=$112.5-$53.8=$58.65.
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