Financial Literacy Final Review

Front

Saving up for retirement is an example of:

Back

A long term goal

Front

If you make a mistake while writing a check, what should you do? Options: Void the check, Issue a stop-payment order, Report it to your bank, Use white-out

Back

Void the check

Front

If you think your credit card was stolen, you:

Back

Should close your account immediately

Front

To be insured, an individual pays a monthly ________________________, as well as a _____________________    for each claim made.

Back

Premium, Deductible

Front

Using the rule of 72, how long would it take for your $3,000 investment to double at a 4% interest rate?

Back

18 years

Front

The longer it takes you to pay back a loan:

Back

The more interest you'll pay

Front

What is the process of spreading your assets out among several different types of investments to reduce risk?

Back

Diversification

Front

A ______________________ is a non-profit financial institution that is owned by its members and organized for their benefit.

Back

Credit union

Front

____________ is an example of a variable expense: Rent payment, Car loan payment, Emergency savings, Electricity bill

Back

Electricity bill

Front

A mortgage is an example of: Open-end credit, Closed-end credit, Revolving credit, Home equity loan

Back

Closed-end credit