PF - Unit 1 Practice for Test

Fixed expenses change with business conditions and other situations.

• True

• False

A new car is an example of a need.

• True

• False

Saving money for the holidays is an example of a long-term goal.

• True

• False

Real estate is an example of a liquid asset.

• True

• False

Take-home pay is equal to your salary.

• True

• False

A deficit is when more money is spent than is earned or received.

• True

• False

A legal document that describes the conditions of a rental agreement is called a lease.

• True

• False

You may qualify for reduced auto insurance rates by getting good grades in school.

• True

• False

If your insurance policy has a low deductible, the premium is low.

• True

• False

Earning interest on previously earned interest is called

• compounding

• economics

• doubling down

• inflation