Passage B

Practice Tests
Practice Tests for the Florida State College Basic Skills Exit Test
Passage B

Read the passage below and answer the questions that follow.

11. Which sentence best states the main idea of the passage?

A. Money management involves decisions about the liquidity of one's assets.

B. Managing credit will depend upon spending habits and sources of available

C. Liquidity of money can be improved through money and credit

D. Financing is often needed to pay for large expenditures.

12. The author's primary purpose is to

A. list the various decisions and issues for managing liquidity.

B. explain the types of loans that are available.

C. discuss the dangers of not following a budget.

D. describe the best way to invest extra money.

13. Identify the relationship of the parts within the following sentence.

"At times you may be unable to avoid cash shortages because of unanticipated expenses."

A. addition

B. comparison

C. classification

D. cause and effect

14. Identify the relationship among these sentences from paragraph four.

"Managing loans involves three decisions. The first is to determine how much you can afford to borrow. The other two decisions are deciding on the maturity (length of time) of the loan, and selecting a loan that charges a competitive interest rate.

A. cause and effect

B. comparison/contrast

C. definition and example

D. listing

15. Liquidity, as first mentioned in line 3, most nearly means

A. amount of a loan

B. money available for spending

C. one's credit rating

D. amount of large expenditures

16. As used in line 10, the phrase "money is not easily accessible" means

A. the purchaser does not have the money to buy an item.

B. the purchaser cannot get to the bank quickly or easily.

C. the purchaser has money, but it is being used for investments.

D. the purchaser does not have the money now, but has the means to earn it.

17. What is the overall tone of this passage?

A. persuasive

B. reflective

C. neutral

D. informal

18. "Credit should be used only when necessary."
This part of the sentence from paragraph three is a statement of

A. fact

B. opinion

19. One reasonable conclusion that can be drawn from the last paragraph is

A. Everyone will need a loan to finance a house or a college education.

B. Loan rates will vary depending upon the loan amount, maturity length, and the loan company.

C. Wise money managers borrow as much money as possible in order to have more liquidity.

D. People who need a loan are able to borrow as much as they need, as long as they pay it back.

20. Throughout the passage, overall, which type of support is offered to describe the various issues involved in managing money or credit?

A. Objective

B. Emotional

21. The reader can infer from this article that

A. Surplus money is best invested in order to grow, but everyone should plan for unanticipated expenses and alternate ways to handle them.

B. Most people are poor managers of money.

C. Most people should hire a financial consultant to help them become better managers of their money because the issues involved are very complicated.

D. Buying a house is an example of a short-term cash need.