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