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Academy of Finance Final Review Flashcards | StudBud
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Academy of Finance Final Review
Money generated by working
Which is NOT a form of debt?
Academy of Finance Final Review
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DIT Academy of Finance Principles of Finance
Flashcards
31 cards
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Questions
31
Answers
1
Which is NOT a form of debt?
student loan
mortgage
debit card
credit card
2
Money generated by working
portfolio income
earned income
passive income
3
Earnings from activity where the individual is not actively involved (rental prop, royalties)
earned income
passive income
portfolio income
4
Which is NOT a financial services institution?
Insurance Companies
Credit Card Companies
Banks, Credit Unions, Savings and Loans
Stocks
5
A detailed plan to manage the spending and saving of money
budget
wealth manager
SMART plan
financial plan
6
Which of the following is NOT a function of money?
Unit of account (measurement)
Investment
Medium of exchange (trading)
Store of value (hold wealth)
7
Virtual banks (online only) do NOT exist.
False
True
8
The __ industry helps people, businesses, gov'ts manage their money.
Financial services
Banking
Credit Union
Stock
9
Which of the following is NOT a type of income?
portfolio income
devised income
passive income
earned income
10
The difference between what you own (assets) and what you owe (liabilities)... (A-L= ?)
wealth
income
expenses
cash flow
11
Money received from a source -earned through labor, for services, from sale of goods, allowance
income
cash flow
expenses
wealth
12
__: the ability of individuals to make appropriate decisions in managing personal finances
Financial literacy
Financial education
Financial maturity
Financial knowlegde
13
Difference between bank and credit union?
Credit union membership is limited
Credit unions offer better interest rates
Credit union is non-profit; bank is for profit
All of these are true
14
Any debts or monetary payments that you owe
asset
wealth
investment
liability
15
Anything you own that has monetary value
investment
asset
liability
wealth
16
Which is a benefit of the financial services industry to the economy?
It discourages saving
It decreases individual wealth
Card services make life more inconvenient
Deposits allow lending which grows the economy
17
An investment from a pool of investors into stocks, bonds, and other securities
pension fund
mutual funds
bonds
stocks
18
Which is NOT a financial service?
mutual funds
loans, credit cards
Bank accounts (saving, checking, CD, money market)
credit unions
19
How money goes in and out of a business or household over a period of time
income
wealth
cash flow
expenses
20
Which of the following regarding virtual banks is FALSE?
There are many locations to use
Harder to obtain cash
Offer lower interest rates on loans
Pay higher interest rates on savings accounts
21
All debt is considered "bad debt"
False
True
22
Good debt buys assets that appreciate or hold value over time. Which is NOT good debt?
student loan
auto loan
business loan
mortgage
23
Online banking allows you to __.
check statements/account balance
All of the above
pay bills electronically
transfer $ between accounts
24
Expenses > Income =
bad cash flow
good cash flow
25
Which is NOT a type of retirement fund?
401k
stocks
403b
pension fund
26
Financial goals force you to stick to a budget bc $ you save now will help you reach your goal
True
False
27
Food, housing, clothing, transportation, healthcare, entertainment, insurance
Investments
Income
Wealth
Expenses
28
A high salary (income) = wealthy person; low income = not wealthy
False
True
29
Millionaires have an advantage in life and don't have to worry about financial literacy.
False
True
30
Income from investments, including dividends, interest, or the sale of a property
portfolio income
earned income
passive income
31
Purpose of financial services institutions?
protect people from financial hardship
hold, protect, and invest money
All of the above
lend money to people
