Chapter 6 Test - Finance

Front

The best reason to save money is to provide for future needs.

Back

True

Front

When you buy a house, the smaller your down payment, the smaller your monthly mortgage payments will be.

Back

False

Front

The biggest advantage of scholarships is that they do not have to be repaid if you complete your education.

Back

True

Front

Scholarships almost always come with no strings attached.

Back

False

Front

Generally, the amount of work-study earnings will help offset the need for student loans.

Back

True

Front

Earnings on principal is called interest.

Back

True

Front

The more often interest is compounded, the greater your interest earnings will be.

Back

True

Front

Credit unions are owned by the board of directors of the banks that established them.

Back

False

Front

Stocks and bonds issued by corporations or by the government are called share accounts.

Back

False

Front

Bonds represent debt, or a loan; stocks represent equity, or ownership.

Back

True