W!SE Test Review 2

Occurs when money is withdrawn from a bank account and the available balance goes below zero.

• Cash-out

• Cash-in

• Reconcile

• Overdraft

Which of the following is a consequence of spending more than you make?

• Missed opportunity to save and invest

• Stress

• A cycle of debt

• All of the above

Never invest using _____________ money.

• Family

• Borrowed

• Diversified

• Pre-tax

Which of the following things cannot be done with a debit card but can be done with a credit card?

• Go into debt

• Purchase an airline ticket

• Go to the movies

• Purchase something online

A budget won't work if you ______________.

• Have an irregular income

• Make less than $20,000 a year

• Don't do it

• Make more than $20,000 a year

Saving takes the maturity to say, “_____” to purchases.

• Yes.

• No.

• How much?

• All choices

The benefit of diversification in your investments is:

• Reduced risk

• Increased return

• Increased risk

• Reduced tax liability

A period of temporary economic decline during which trade and industrial activity are reduced; generally identified by a fall in the gross domestic product (GDP)

• Blast Economy

• Market Economy

• Recession

• Boom Economy

Which of the following are reasons to save?

• Emergency fund

• Purchases

• Wealth building

• All of the above

Don't buy things you don't:

• Want

• Understand

• Have

• Define