Personal Finance Final

This employer sponsored retirement plan allows an employee to invest a portion of their paycheck before taxes are taken out.

• SImple PRA

• Roth IRA

• 401(k)

• 401(e)

Medical bills, credit card bills, and personal loans are known as _______.

• deposit

• withdrawal

• debt

• credit

An individual without an emergency fund in place is more likely to get into financial trouble than an individual with an emergency fund in place.

• TRUE

• FALSE

As a consumer, you have the right and responsibility to report any cases of __________, identity theft, or unfair business practices to the Federal Trade Commission (FTC).

• theft

• fraud

• bullying

• finance

If you were ever a victim of unfair business practices, which agency could you call for help?

• Food & Drug Administration

• United States Department of Agriculture

• United States Department of Agriculture State Police

• Federal Trade Commission

Which of the following topics are covered by consumer protection laws?

• Fraud

• Misrepresentation

• Unfair business practices

• All of these answers are correct.

The rates of return for the various savings tools are higher than those for investments.

• TRUE

• FALSE

Using the Rule of 72, how long would it take an investment with a 4% interest rate to double?

• 18 Years

• 8 Years

• 18 Months

• 8 Weeks

Which of the following best describes the relationship between risk and reward, as they pertain to savings and investments?

• Lower Risk, Higher Reward

• Higher Risk, Lower Reward

• Higher Risk, Higher Reward

• None of these answers are correct.

Stocks, bonds, and mutual funds are examples of ______________.

• money

• investments

• debts

• income