Personal Finance Flashcards

1

People beginning to invest in the stock market prefer a

bull market
bear market

2

which has the highest investment risk?

government bonds
mutual funds
stocks
corporate bonds

3

Money that is legal tender from the government

representative
commodity
backed
fiat

4

Savings account with the highest interest

savings bond
Certificate of Deposit
savings account
money market

5

Banks serve as a financial intermediary between

cash and currency
savers and borrowers
officers and customers
risk and reward

6

Income received by the government from taxes

entitlement
budget
tariff
revenue

7

The Rule of 72 allows you to estimate

which financial planner best suits your needs
how many different stocks you should own
which investment has the gratest returns
how long it will take to double your investment

8

Tax base for FICA

goods and services
progressive
income
property

9

Stock prices are rising

bull market
bear market

10

An advantage of bonds is that there is

more risk
little return
more return
less risk

11

Characteristics of a good tax

simplicity and equity
efficiency and complexity
simplicity and elasticity
certainty and inelasticity

12

The original amount of money borrowed or lent

principal
interest
intermediary
liquidity

13

The reason mutual funds are a popular invesment

you invest in your own company
most return
diversification
lots of stocks

14

Which of the following is NOT a function of money?

unit of account
store of value
medium of exchange
bartering

15

How do banks make profit?

interest rates from exchange of money
Interest rates on savings accounts
interest rates on checking accounts
interest rates on loans

Personal Finance

Questions 15

Personal Finance

Questions 15