Foundations in Personal Finance PRE/POST TEST

A liability can be described as

• Something you own that has value

• Something you owe; a debt

• Something that goes down in value over time

• Money that you have in a savings account

Which of the following allows invested money to grow over time? (a)  

• Compound interest
• Premium payments
• Taxes
• Inflation

A plan for spending is called a (a)  

• Checking account
• Economy
• Scarcity
• Budget

A fee that a bank, credit card company, or other lender charges for the opportunity to purchase something and pay it over time. (a)  

• Interest
• Dividend
• Credit
• Finance rate

The FICO score measures all of the following, except (a)  

• Debt history
• Savings account balance
• Types of debt
• New debt

Non-wage compensation provided by your employer is known as (a)  

• Withholding
• Employee benefits
• Take-home pay
• Income

The amount of money you get paid after taxes are taken out is called

• Take-home pay

• Withholding

• Benefit pay

• Gross income

Money taken out of your paycheck for taxes is called

• Employee benefits

• Take-home pay

• Withholding

• Net pay

_____________ represent small pieces of ownership in a company (fill in the blank with correct answer).

• Stocks

• Bonds

• Mutual funds

• Certificates of deposit

In which of the following should you keep your emergency fund?

• Stocks

• Money market account

• Mutual funds

• Certificates of deposit