Personal Finance - Final Review

Which of the following is a consequence of spending more than you make?

• Missed opportunity to save and invest

• Stress

• A cycle of debt

• All of the above

Using a sinking fund how much do you have to save each month to buy a $1200 car a year from now?

• $200

• $100

• $150

• $250

A credit score is intended to measure:

• Your financial success

• Your income level

• The risk of your not repaying debt

• The amount of money you have in the bank

Which of the following is not a good option when it comes to paying for your education?

• Plan ahead

• Ask your parents to take out a loan

• Fill out the FAFSA

• Get a part-time job

What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ?

• Opportunity cost

• Law of diminishing return

• Significant purchases

• Delayed gratification

Which statement is true about liquidity?

• The more liquid an investment, the more return

• The less liquid the investment, the less return

• The more liquid an investment, the less return

• None of the above

During your first interview with a company, you should not:

• Show interest and be enthusiastic

• Be personable and try to connect with the interviewer

• Bring extra copies of your resume

• Ask about salary

A young investor willing to take moderate risk for above-average growth would be interested in:

• Single Stocks

• Bonds

• Mutual Funds

• Real Estate

Rent is an example of a(n):

• Variable expense

• Fixed expense

• Discretionary expense

• Intermittent expense

Long-term investments, properly diversified, include the following mutual funds:

• Growth, balanced, international, bond

• International, bond, aggressive growth, growth

• Growth, growth and income, international, aggressive growth

• Growth, growth and income, bond, aggressive growth