Financial Literacy Midterm Review

Front

Which of the following names is written properly below: Susan J., susan jones, S. Jones, Susan Jones?

Back

Susan Jones

Front

Something you can live without but it does make your life more comfortable.

Back

Want

Front

Simple interest is calculated on

Back

principal

Front

Compound interest is interest that is paid (or received) on

Back

principal + interest

Front

Interest is a sum paid or charged for the use of money or for borrowing.

Back

True

Front

Return on Investment is equivalent to the initial cost of the investment less its final value.

Back

False

Front

Policies refer to covered events as “perils.”

Back

True

Front

A standard homeowner's policy pays to repair or rebuild your home if it is damaged or destroyed by a flood, an earthquake, your children, or your pets.

Back

False

Front

A homeowner's insurance policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, or lightening.

Back

True

Front

The amount borrowed (I sometimes say the original amount of the loan) is

Back

principal