Wealth Management Unit 1 Review #2

Karen paid for her car by using bitcoin, which is a digitally secure, electronic form of currency. This form of money is what type:

• Fiat Currency

• Commodity Currency

• Representative Currency

• None of these

Which of the following factors is always needed for effective decision-making:

• Money

• Information

• Time

• Logic

An overall purpose of establishing goals is to increase your chances of

• achieving immediate success.

• satisfying your wants.

• enlarging your income.

• avoiding making mistakes.

Which of the following is one of the functions of money:

• Method of investment

• System of cash

• Medium of exchange

• Process of accounting

Kyle bought a stereo at a local appliance store. When he brought it home, he discovered that the stereo did not operate properly. Which of the following should he do first:

• Fix it himself

• Return the item to place of purchase

• Sell it on Craigslist

• Take legal action

For which of the following items would you save (rather than invest):

• Spring break

• Retirement

• Future children's college

• House

A formal legal agreement between a lender and a borrower usually includes a

• proposal for disbursement.

• tax code listing.

• repayment schedule.

• guarantee of eminent domain.

Who is legally responsible for repaying a bank loan if the loan borrower fails to make payments as indicated in the loan contract?

• Credit union

• Co-signer

• Treasury Department

• Debt collectors

By understanding the time value of money concept, you know that

• it is better to receive $101 a year from now than $100 today.

• it is better to receive $100 today than $101 a year from now.

• saving money can buy time on debt payment.

• time and money are related by due date.

Saving the money that you might ordinarily spend each day on a cup of coffee and a donut

• can help you achieve larger financial goals.

• will not result in significant savings.

• is the sacrifice you must make for future financial security.

• is not a practical step in reaching your financial goals.