Chapter 10 Exam Review {Money Matters}

Money set aside for the future is called:

• Investing

• Emergency Fund

• Savings

A strategy to earn more on your money than the rate of inflation is called:

• Investing

• Savings

• Liquidity

A measure of how quickly an asset can be converted to cash is called:

• Emergency Fund

• Liquidity

• Exchange Rate

True or False: A short-term goal is one that is completed in less than one year.

• True

• False

Saving money before you do anything else with your paycheck is called:

• "Pay Yourself First"

• Wealth

• Savings

True or False: The ability to meet current and future needs while living comfortably is called Financial Security.

• True

• False

A fund or organization established and maintained for the purpose of supporting an institution or a cause is called:

• Foundation

• Wealth

• Estate

True or False: One example of an asset is a house than money is still owed on.

• True

• False

The potential for change in the value of an investment is called:

• Inflation Risk

• Investment Risk

• Political Risk

• Industry Risk

The chance that the rate of inflation will rise faster than your investment's rate of return is called:

• Investment Risk

• Political Risk

• Inflation Risk

• Industry Risk