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Unit 2 review- UPDATED Flashcards | StudBud
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Unit 2 review- UPDATED
Unit 2 review- UPDATED
23 terms
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StudBud Administration
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Cash Management, Time Value of Money, Rule of 72
Flashcards
23 cards
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Practice quiz
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Questions
23
Answers
1
Characteristics of Certificates of Deposit are
low risk and no fees
Time restricted access
government insured
all of the above
2
When you invest you want
High interest rates
Low Interest rates
3
An investment you can purchase from the government at 50% of the face value?
Savings Bond
Certificate of Deposit
Low Interest Savings
Mutual Fund
4
Inflation can be characterized as
Projected value of an investment
The number of times rates are compounded
Making a large deposit into any account
A steady rise in the general level of prices
5
A government insured account with tiered interest rates offered at most depository institutions
Certificate of Deposit
Savings Bond
Money Market
Savings
6
When the stock market is performing poorly it is a Bear Market?
True
False
7
Which factors affect the time value of money?
time
interest rate
amount invested
all the above
8
Cash Management Tools are defined as...
The daily routine of handling money
The method of saving and spending
A place where you keep your cash safe
Keeping your cash under your mattress
9
This picture that represents the trade-offs between risk and return is called the
Pyramid of Interest
Cash managment tools pyramid
Financial Tools Pyramid
Mount Investment
10
What is the definition of liquidity?
a beverage
how quickly you can melt a coin
turning dollars into gold
how quickly the account can be converted to cash
11
How can you get to your money in a checking account?
All of the above
ATM
Online banking
Checks
12
Which is not an example of a cash management tool?
Money Market
Safety Deposit Box
Savings
Savings Bond
13
What account is the most liquid?
CD
Money Market
Savings Bond
Checking
14
Which savings tool might earn you the most interest?
Savings Bonds
Certificate of Deposit
Checking Account
Money Market
15
When the stock market is performing well...
Bull Market
Dog Market
Bear Market
Cow Market
16
The rule that says my money today is worth more than money in the future
Interest Rate Rule
70-20-10 rule
Rule of 72
Financial Risk Pyramid
17
70-20-10 rule says
70% saved, 20% spent, and 10% invested.
70% spent, 20% saved, and 10% invested.
18
What is the term for the original investment someone makes?
principal
deposit
interest
bond
19
Purchasing of assets to increase income
Financial Plan
Time value of money
Investing
Liquidity
20
Tool used to transfer funds to make a cash purchase
Checking
Savings
Cash Management
Financial Plan
21
How much income should an individual have saved up for emergencies?
1-3 years
3-6 months
6-12 months
1-2 months
22
What are some reasons people save?
Emergencies
Expenses and future purchases
All of the Above
Investing
23
A low interest earning account used to hold money not spent on consumption.
Savings
Money Market
CD
Checking
