24/25 Personal Finance Final Exam

Front

What is the only way to pay no interest on credit card purchases?

Back

Pay the full balance on time every month.

Front

If you cannot pay the full balance on a credit card you should ..

Back

Pay as much as you can over the minimum

Front

In general, as your credit score increases, the interest rate you will be charged for a new loan ..

Back

Decreases

Front

When it comes to investing, any risk is bad.

Back

False

Front

Why is it best to start investing when you are young?

Back

Your money has a long time to grow, so even a smaller amount can get big.

Front

What does the federal government do to encourage you to invest for your retirement?

Back

Gives you tax breaks.

Front

You can tell how a company's stock will perform in the future if you study how they have done in the past and lately.

Back

False

Front

If I put all of my money in Apple stock, what is wrong with that?

Back

My investments are not diversified, so it is really risky

Front

This type of retirement fund has you put in money that has already been taxed but lets it grow and get taken out tax free when you retire?

Back

Roth IRA

Front

The ability to convert financial resources into usable cash with ease is referred to as:

Back

Liquidity