GFL Review Flashcard

Front

What would be the most financially responsible way for Juan to purchase a laptop for college? Options: Start saving money each month to make the purchase, Purchase it now with a payday loan, Borrow money from a family member or friend, Buy it with your student loan money

Back

Start saving money each month to make the purchase

Front

Which of the following is true regarding a credit score? Options: It shows how many credit cards you qualify for, It influences the interest rate of loans, It determines the length of a loan, It shows personal income

Back

It influences the interest rate of loans

Front

Which of the following events would cause a reduction in the monthly spending of Maria's budget? Her office location is changed, and her commute time decreases, She cuts back on her hours to take care of a dependent, She gets a promotion and her salary increases, Her company adds an employer sponsored health insurance plan

Back

Her company adds an employer sponsored health insurance plan

Front

What is inflation?

Back

The rise in the general level of prices.

Front

Which of the following best defines compound interest? Earning interest on someone else's money, Earning a higher than market rate of interest, Earning interest on interest, Earning interest on the principal only

Back

Earning interest on interest

Front

What will happen to the amount of money being withheld from Sarah's paycheck for taxes if she changes her W-4 from 2 allowances to 6 allowances?

Back

Increase

Front

What is the term for the amount of money an employee earns in a pay period?

Back

Gross Pay

Front

Valerie has money to invest in the stock market. She chooses to invest in a mutual fund composed of several companies to reduce risk. Which term best describes what Valerie has done with her money?

Back

Diversification

Front

Most states have consumer protection laws. These laws protect buyers from which of the following? Credit card debt, Student loan debt, Impulse buying and overspending, Predatory services and products

Back

Predatory services and products

Front

What type of goal has Tyler set if he wants to retire in 30 years and is putting 15% of his income into a retirement account? Options: Short term, Long term, Immediate, Unrealisitc

Back

Long term