Economic and Personal Finance Flashcard

Front

What is the term for the total value of all goods and services produced within a country in a year?

Back

Gross Domestic Product (GDP)

Front

Which of the following is a fixed expense? Groceries, Rent, Entertainment, Clothing

Back

Rent

Front

Calculate the simple interest earned on a principal of $500 at an interest rate of 5% per annum for 3 years.

Back

$75

Front

What is the primary purpose of a budget?

Back

To plan future income and expenses

Front

Back

25%

Front

Which of the following is an example of a variable expense? Mortgage payment, Utility bill, Car insurance, Property tax

Back

Utility bill

Front

Back

Front

If you invest $1,000 in a savings account with an annual interest rate of 4% compounded annually, how much will you have after 2 years?

Back

$1,081.60

Front

What is the term for the amount of money borrowed or invested, excluding any interest or dividends?

Back

Principal

Front

Which of the following best describes a stock? A loan to a company or government, A share of ownership in a company, A fixed income investment, A savings account

Back

A share of ownership in a company