Fin. Lit Final - True/False

Rate of return matters when it comes to compound interest.

• True

• False

Diversification means to spread around.

• True

• False

Once you have a fully-funded emergency fund, baby step 2 is to put 10% of your income into retirement plans.

• True

• False

A stock is an investment that represents a share, or partial ownership, of a company.

• True

• False

You do not need renter’s insurance if you live in a dorm at college.

• True

• False

Increasing your deductible usually decreases the premium.

• True

• False

Pre-authorized checking helps to build discipline in savings.

• True

• False

You should purchase life insurance as a Senior in High School.

• True

• False

If we used a race analogy to describe building wealth, it would be most like a sprint

• True

• False

Liquidity is the availability of your money.

• True

• False