Econ Ch 6 and 7

A written financial plan can also be called _____.

• Personal Finance
• Budget
• Envelope System
• reconcile

The possibility of a loss when investing is called

• Risk

• Liability

• Insurance

• Hazard

When income and expenses are equal

• Budget
• Income
• Balanced Budget
• Check

The amount of one's money covered per account by the FDIC and the NCUA is?

• 1000,000
• 250,000
• 100
• 2500

Which one is NOT a savings tool?

• Money Market Account
• savings account
• Certificate of Deposit 
• checking account

What is the difference between a credit card and a debit card? 

• A debit card is subtracted from your checking account. A credit card is not attached to your checking account. 
• A credit card is subtracted from your checking account. A debit card has a credit limit. 

The most risky of all investments but has the highest possible rate of return is 

• Corporate bonds
• Government bonds
• Common stocks in one company
• Mutual Funds

The two parts of a budget are

• Income and dividends

• income and profit

• expenses and costs

• income and expenses

The best investment that balances risk with potential return is

• a CD

• mutual fund

• individual company stock

• savings account

The driving force behind people going into business is

• profit margin
• profit motive
• opportunity cost
• taxes