Foundations in Personal Finance Pre-Test/Post-Test

A liability can be described as

• Something you own that has value

• Something you owe; a debt

• Something that goes down in value over time

• Money that you have in a savings account

Which of the following allows invested money to grow over time?

• Compound interest

• Premium payments

• Taxes

• Inflation

A plan for spending is called a(n)

• Checking account

• Economy

• Scarcity

• Budget

A fee that a bank, credit card company, or other lender charges for the opportunity to

purchase something and pay for it over time.

• Interest

• Dividend

• Credit

• Finance rate

The FICO score measures all of the following, except

• Debt history

• Savings account balance

• Types of debt

• New debt

Non-wage compensation provided by your employer is known as

• Withholding

• Employee benefits

• Take-home pay

• Income

The amount of money you get paid after taxes are taken out is called

• Take-home pay

• Withholding

• Benefit pay

• Gross income

Money taken out of your paycheck for taxes is called

• Employee benefits

• Take-home pay

• Withholding

• Net pay

Represent small pieces of ownership in a company

• Stocks

• Bonds

• Mutual funds

• Certificates of deposit

In which of the following should you keep your emergency fund

• Stocks

• Money market account

• Mutual funds

• Certificates of deposit