Why is being financially literate is so important?

it plans for your future and helps you reach financial goals

Some different types of investment instruments are:

stocks, bonds, and mutual funds

What is the financial services industry?

many different institutions that manage money.

Explain the functions of money:

a medium of exchange, a unit of account and a store of value

Explain what financial literacy is:

the ability and knowledge to manage our finances effectively

The four most common forms of business ownership are:

sole proprietorships, LLC's, partnerships and corporations

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NAF-End of course Exam - Principles of Finance

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review for Principles of Finance end of course exam.

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Questions 15

Answers

1
Expenses are:
the money that comes in
the money that goes out
money's potential to grow over time
money owed because of borrowing
2
What are some sources of money or income?
wages
gifts
all of the above
mutual funds
3
Cash flow is:
Income available after all financial commitments is paid
income-expenses
money that comes in
money that goes out
4
Why is being financially literate is so important?
it plans for your future and helps you reach financial goals
to know the difference between needs and wants
so you can know how to keep a job
to pass this class
5
Wealth is:
anything that you own that has monetary value
any debts or monetary payments you owe
making a large income
assets-liabilities
6
Some different types of investment instruments are:
thrifts and savings and loans
stocks, bonds, and mutual funds
none of the above
banks, thrifts and insurance companies
7
What is the financial services industry?
a bank or commercial bank
many different institutions that manage money.
an insurance company
credits unions or thrifts
8
Explain the functions of money:
a store of value
a unit of account
a medium of exchange, a unit of account and a store of value
a medium of exchange
9
Debt is money owed because of borrowing. What are bad debts?
credit cards
student loans
none of the above
mortgage
10
Income is:
how money comes and goes
money that comes in
a fee paid for borrowing money
money that goes out
11
There are many different factors that can affect a business. Many factors include:
all of the above
Technological innovations
Globalization of business
Demographic and societal trends
12
Financial services institutions may:
all of the above
Lend money to people through loans, mortgages, credit cards
Hold and protect people’s money for example: at a bank
Protect people from being financially hurt insurance company
13
Explain what financial literacy is:
Money’s potential to grow in value over time.
To know how to spend money
To be good at finance
the ability and knowledge to manage our finances effectively
14
The four most common forms of business ownership are:
F D I C
sole proprietorships, LLC's, partnerships and corporations
banks, thrifts, credit unions and insurance companies
cash flow, income, debt and expenses
15
Identify the different types of financial intermediaries
mutual funds and pension funds
all of the above
credit unions and insurance companies.
banks and thrifts

NAF-End of course Exam - Principles of Finance Flashcards | StudBud