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Final Review
Final Review
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Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
If Sam makes $10 per hour and he worked 10 hours, his deductions are $25, what is his net pay?
$125
$75
$50
$100
2
Why is it important to save early?
More time for the compound interest to grow your money
More likely to get a better interest rate at a younger age
Less likely to spend it later
A penny earned is a penny saved
3
Which of the following is not an investment tool?
Speculative Investment
Real Estate
Money Market Account
Bond
4
The general rise of prices is also referred to as...
supply
liquidity
inflation
demand
5
What is the relationship between risk and reward?
The higher the risk the higher the potential for reward
The higher the risk the lower the reward
The lower the risk the higher the reward
There is no relationship between risk and reward
6
What does APR stand for?
Annual Percentage Rate
Annual Perpetual Rate
Association Percentage Rating
Association of Perkins Rights
7
Typically an individual that had more education...
Will retire early
Will earn more money
Will spend less on college
Will die at a younger age
8
If you invest $100 and you end up with $120, what is your rate of return?
$100
$20
120%
20%
9
Which is not true of savings and investing?
Saving is more liquid
Investing is more risky
Savings is money not spent on consumption
Saving has a higher potential for return
10
Which of the following is not a variable expense?
car payment
electric bill
groceries
water bill
11
What two items make up FICA?
Medicare and Medicaid
Medicare and Social Security
Medicaid and Retirement
Social Security and Insurance
12
What is the relationship between liquidity and return?
The lower the liquidity the lower the return
The higher the liquidity the higher the return
The lower the liquidity the higher the return
The higher the liquidity the lower the return
13
Which of the following is an example of a fixed expense?
gasoline
groceries
oil change
rent
14
Which of the following is not a savings tool?
Checking Account
CD
Mutual Fund
Savings Account
15
Which two items make up a budget?
assets and debts
needs and wants
income and expenses
savings and checking
16
What is interest?
Money paid to borrow money
Amount leftover after taxes
How you feel about someone
Money spent to buy designer clothes
17
How long does bankruptcy stay on your credit report?
3 years
10 years
Forever
7 years
18
What is the formula for simple interest?
I=P*R/T
P=P*R*T
I=P*R*T
S=M*P*L*E
19
Which formula is best for telling how many years it will take to double an investment?
Compound Interest
Simple Interest
Rule of 72
Rate of Return
20
Which of the following savings tools is time dependent?
certificate of deposit
money market account
checking account
savings accout
21
This is money earned.
Deductions
Taxes
Expense
Income
22
The functions of the Federal Reserve include all but which one?
Processing checks
Cashing checks for customers
Setting interest rates
Influencing money supply
23
This is something you do day to day, it does not require research or thinking, like a habit.
Routine Decision
Short Term Goal
Major Decision
Value
24
What does it mean to bounce a check?
You had too much money in your account
Your checks are made of rubber
You use the same check two months in a row
You have insufficient funds
25
All of the following are examples of a need except...
shelter
water
steak dinner
clothes
26
Another term for opportunity cost is...
bad choice
goal
buyers remorse
trade off
27
How long is a short term goal?
3-12 months
3 months or less
0-3 years
3-6 months
28
Which of the following is an example of a want?
shelter
water
food
designer shoes
29
What two things should be considered before making a budget?
needs and wants
income and savings
expenses and debt
assets and retirement
30
Which is not a benefit of having good credit?
Easier to obtain future credit
More likely to make more money
Easier to rent an apartment
Lower interest rates on loans
