Financial Literacy Review

Which of the following is an itemized summary of the expected income and expenses for a defined period of time such as a month?

• Net Worth

• Balance Sheet

• Budget

• Equity

An individual has total assets of $120,000 and total liabilities of $80,000. What is his net worth?

• $30,000

• $40,000

• -$40,000

• -$30,000

Which of the following is an expense which can vary in amount from month to month?

• Fixed expense

• Variable expense

• Estimated expense

• Equity expense

Morgan and Jaron were recently married. They have set a goal to save up for a down payment to purchase a house in seven years. Which of the following types of financial goals has been set?

• Short-term goal

• Intermediate-term goal

• Long-term goal

• Life goal

Which of the following types of interest rate fluctuates over time as market interest rates change?

• Fixed

• Annual

• Variable

• Irregular

Which of the following is an example of revolving credit?

• Credit Card

• Loan

• Mortgage

• Auto Loan

Which of the following loan/credit types requires a lien on an asset of the borrower as a guarantee?

• Collateralized loan

• Revolving credit

• Installment credit

• Unsecured credit

Which of the following is the process of paying off a loan over time with regular, equal payments?

• Amortization

• Collateral

• Revolving payments

• Capacity

Which loan should someone payoff first?

• Loan with the largest balance

• Loan with the smallest balance

• Loan with the lowest interest rate

• Loan with the highest interest rate

How much would a $10,000 deposit earn after three years assuming a five percent annual compound interest rate?

• $1,250.00

• $1,500.00

• $1,576.25

• $2,576.25