PESH Econ Unit 5 (personal finance)

Which is the most costly and least desirable payment for a revolving balance account? (Such as a credit card)

• Paying only the minimum monthly

• Paying the entire balance every month

• Pay 1/2 this month and 1/2 next month

• Pay more than the minimum monthly

A persons credit rating is defined by all of the following EXCEPT

• Amount of money owed

• Number of stocks owed

• Past payment history

• Length of credit history

When expenses exceed income in a budget, it is

• a surplus

• a deficit

• at equilibrium

• in a period of stabilization

When choosing a financial investment, 3 important criteria are

• Inflation, taxes, collateral

• Collateral, liquidity, dividends

• Risk, rate of return, liquidity

• Size, taxes, risk

The government agency that regulates the sale of securities and the firms that sell them is

• FDIC

• I RS

• Department of commerce

• Securities and Exchange Commission

A loan made by a person to a business or government

• Dividend

• Stock

• Mutual fund

• Bond

The interest paid on unpaid credit balances is called

• Installment payment

• Minimum balance

• Finance charge

• Rate of return

Spreading investments widely across different industry sectors and different investment types is called

• Technology

• Risk and return

• Diversification

• Net asset value

The price associated with using someone else’s money

• Interest

• Lending

• Borrowing

• Risk

What percentage of income should people save?

• 5%

• 12%

• 10%

• 18%