Adult Roles and Financial Literacy State Test Review- Strand 7

The first step in becoming financially independent is:

Which of the following investments has the highest risk and highest potential rate of return?

What is the recommended percent of income that one should save?

Spreading your money among different types of savings and investments is called...

If one can earn 9% interest on an investment, about how long will it take to double in value?

What does risk mean in regard to investments?

Which investment has low risk, a low rate of return, and is long-term?

Which is NOT an investment service?

When evaluating investment alternatives you should remember:

The money charged for using someone’s money is called:

A ___ is a person who guarantees a loan for the original borrower & is responsible for the debt

If your total income is $1,800 a month, what is the RECOMMENDED MAXIMUM to budget for rent?

What interest rate would one need to earn in order to double an investment in 6 years?

A common mistaken belief about retirement is:

Take-home pay (paycheck after deductions) is also called:

The rule of 72 is useful in calculating the:

Which of the following will help you establish a good credit history?

What does it mean to "pay yourself first"?

How much would you have to invest per month if you saved 12% of your $500 monthly income?

Bankruptcy:

___ is when goods, services, or money is received and promised to pay back in the future.

The basic rule of a risk-to-return relationship is that the:

When shopping for an auto loan, the amount of the actual loan for the car is:

Which of these is NOT a consequence of declaring bankruptcy?

The process of earning interest on interest is...

Due to the effects of inflation, in the future a dollar will be worth...