Personal Finance Final

A liability can be described as:

• something you own that has value

• money you owe; a debt

• something that goes down in value over time

• money that you have in a savings account

Which of the following would be a good reason to use money out of your emergency fund?

• I need a vacation at the beach.

• The jeans that I really want are on sale this week, but I don't have enough money on hand to get them.

• The transmission went out on my car.

• My friend needs to borow money from me so that she can go to the concert with us this weekend.

A plan for spending is called a(n)

• checking account
• economy
• scarcity
• budget

A measurement of the total dollar value of a person's or business' assets minus liabilities is called:

• net worth
• wealth
• earnings
• income

Which of the following allows YOUR INVESTMENTS to grow over time?

• compound interest
• taxes
• inflation
• scarcity

When you buy things with cash, you will always PAY MORE for the things you buy.

• true
• false

The FICO score measures all of the following EXCEPT:

• Debt history
• Savings account balance
• Types of debt
• New debt

Which of the following describes the best way to buy a car?

• Ask your parents to borrow money for the car.
• Save up and pay cash for a used car you can afford.
• Save up a down payment and take out a loan for the rest of the cost of the car
• Ask your grandparents to cosign a loan for a new car.

Which of the following is NOT a good way to pay for college

• scholarships
• loans
• grants
• work-study programs

A fee that a bank, credit card, or other lender charges for the opportunity to purchase something and pay for it over time is called:

• interest
• dividend
• credit
• finance rate