Financial Literacy Unit 2 Review

Question 1

A savings certificate with a fixed interest rate

Accepted Answer

CD

Question 2

Monthly or yearly fee required in some communities to provide benefits (pools, tennis courts.)

Accepted Answer

HOA Fee

Question 3

The increase in the cost of goods and services over time or the decline in the purchasing power

Accepted Answer

Inflation

Question 4

Expenses that remain the same from month to month.

Accepted Answer

fixed

Question 5

A condition of limited resources and unlimited wants.

Accepted Answer

Scarcity

Question 6

A cash-flow plan that assigns an expense to every dollar

Accepted Answer

zero-based budget

Question 7

The rate at which the prices for goods and services rise

Accepted Answer

inflation

Question 8

Changing a photograph to make it look better

Accepted Answer

Photoshopping

Question 9

The ability to convert an asset into cash quickly

Accepted Answer

liquidity

Question 10

The paid display for specific products in movies, tv and media for advertisment

Accepted Answer

Product placement

Question 11

Economic system based on private ownership of business and the products made and sold.

Accepted Answer

capitalism

Question 12

The amount you must pay before you receive any benefits from your insurance coverage

Accepted Answer

deductible

Question 13

A loan of money to a business or government that is paid back with interest over time.

Accepted Answer

Bond

Question 14

Buying decisions based on preference to purchase a specific brand

Accepted Answer

brand loyalty

Question 15

Advertising a lower priced item to lure customers in to offer them a more expensive item

Accepted Answer

bait and switch

Question 16

Refers to money; specifically financial assets or the value of someone's assets

Accepted Answer

Capital

Question 17

An unplanned spur of the moment purchase

Accepted Answer

Impulse purchase

Question 18

The illegal use of someone's personal information to purchase items or receive benefits

Accepted Answer

identity theft

Question 19

Anything you owe; a debt.

Accepted Answer

liability

Question 20

Money today has a different buying power than the same amount of money later

Accepted Answer

Time Value of Money

Question 21

The likelihood of loss on an investment

Accepted Answer

Risk

Question 22

The money you invest that is taken from your income after taxes have been paid.

Accepted Answer

After-tax contributions

Question 23

The total value of one's assets minus liabilities

Accepted Answer

Net worth

Question 24

The amount of money available for spending and saving after income taxes have been taken out

Accepted Answer

disposable income

Question 25

Intentionally false or deceptive practices

Accepted Answer

Fradulent

Question 26

Dividing the money a person invests between several types of investments to lower risk.

Accepted Answer

diversification

Question 27

The state of being satisfied with what you have

Accepted Answer

Contentment

Question 28

The potential impact of inflation and interest on money

Accepted Answer

Time Value of Money

Question 29

Expense that change from month to month

Accepted Answer

variable

Question 30

The total take-home pay after taxes and other deductions have been taken out.

Accepted Answer

net income

Question 31

Total market value of all the goods and services produced by a country during a specified time

Accepted Answer

GDP

Question 32

An economic system where the government owns all the resources

Accepted Answer

Capitalism

Question 33

A person or organization that uses a product or service

Accepted Answer

Consumer

Question 34

The study of how a society manages its resources to produce and distribute goods and services

Accepted Answer

Economics

Question 35

The value of a piece of property over and above any mortgage or liabilities related to it.

Accepted Answer

Owners Equity

Question 36

The main federal agency designed to enforce consumer protection laws.

Accepted Answer

FTC

Question 37

The dependence on other countries resulting in the trade of goods and services

Accepted Answer

Interdependence

Question 38

The interaction between the various countries in the world

Accepted Answer

Globalization

Question 39

A summary list showing the value of someone's assets and liabilities

Accepted Answer

Net-worth Statement

Question 40

Investments that represent small pieces of ownership in a company.

Accepted Answer

stocks

Question 41

The money earned on an investment, the profitability of investments.

Accepted Answer

Return on investment (ROI)

Question 42

Refers to the financial opportunity that is given up because you chose to do something else

Accepted Answer

Opportunity cost

Question 43

Everything a company does to get consumers to buy their product

Accepted Answer

Marketing

Question 44

The and movement of goods and services through an economic system.

Accepted Answer

Chain of production

Question 45

Retirement savings plan offered by a company to its employees

Accepted Answer

401(k)

Question 46

Anything of value that is owned by an individual

Accepted Answer

Asset

Question 47

Something that motivates someone to do something (like coupons or BOGO)

Accepted Answer

Incetives

Question 48

A process to control the amount of goods & services being used, (when there is scarcity)

Accepted Answer

Rationing

Question 49

A financial professional who manages investments

Accepted Answer

Investment advisor

Question 50

A type of retirement account that grows tax free

Accepted Answer

ROTH IRA

Financial Literacy Unit 2 Review

Questions 50

Financial Literacy Unit 2 Review

Questions 50