Personal Financial Literacy

James earns 10% of every sale he makes. This is an example of:

• Wages

• Commission

• Salary

• Assets

The life of a CD (Certificate of Deposit) can range from a few ____________.

• weeks to several months

• days to a few months

• years to a decade

• months to several years

Education, training, and experience are some factors that influence earned income.

• True

• False

A __________allows you to invest your money with a set interest rate for a pre-set period of time.

• Certificate of Deposit

• Money Market

• Savings

• Checking

An account that allows you to save money, as well as make deposits and withdrawals.

• Certificate of DepositSavings

• Savings

• Checking

• Money Market

Phil earns $22 per hour. This is an example of:

• Salary

• Commission

• Labor

• Wages

Wages, salary and commission are examples of what type of income?

• Passive

• Earned

• Portfolio

What is the definition of a "want"?

• Something that is necessary for you to survive.

• Something that is important for you to have.

• Something you do not need to survive.

• Something you would like to have.

Consumer credit can help a lender determine how much a borrower is charged to borrow money.

• True

• False

Meredith received a refund of $500. Meredith needs a new laptop, but she would also like to go on vacation to the Bahamas. If Meredith purchases the laptop, what is her opportunity cost?

• The $500

• The Bahamas vacation

• The laptop