Unit 5 Review PF

Money available at the present time (today) is worth more than the same amount if received in the future

• Pay Yourself First
• Time Value of Money

"Pay yourself first" is an essential component of personal financial management to ensure that you always save.

• true
• false

Why do experts suggest that your emergency savings be in a very liquid savings tool?

• all of these
• so it is accessible if it is needed quickly
• so you can save as much as possible
• so you can earn interest on your money

It is important to have a high interest rate when saving.

• True
• False

Earning interest on interest is?

• pay yourself first
• trade-off
• saving
• compounding interest

A saving strategy that states to set aside a predetermined portion of money for saving each time a person is paid before using any of the money for spending is called?

• compounding interest
• trade-off
• opportunity cost
• pay yourself first

Begin saving as early as possible to maximize savings through?

• time
• money 
• interest rate

Experts suggest that emergency savings equal 6-9 months of a person's expenses to be held in liquid assets for emergency savings.

• True
• False

How quickly and easily assets can be accessed and converted into cash.

• Interest
• liquidity
• goal
• savings

In relation to the other options, how liquid is a savings account?

• More liquid than cash
• Less liquid than mutual funds
• More liquid than a Certificate of Deposit
• More liquid than a checking account