FINLIT Midterm/Final Review

Investing in a 401k will benefit you most if viewed as a long-term plan for

• college

• small business

• retirement

• budgeting

Buying stock in a variety of companies from different industries is known as...

• short covering

• diversification

• day trading

• selective investing

Diversifying your portfolio....

• increases your buying power

• decreases your buying power

• increases your risk of losing money on your investments

• decreases your risk of losing money on your invesments

Investing in a 401k is best viewed as...

• a short term investment

• a long term investment

• a savings account

• a credit account

If you buy 100 shares at $10 and sell the stock at $100, you make a profit of

• $100

• $10,000-$1,000 = $9,000

• $1,000

• $10,000

The most useful tool for achieving your financial goals

• budgeting

• credit cards

• debit cards

• a checking account

When you get your paycheck, the first thing you do is put some of your money into savings.

• "crediting"

• "investing"

• "compounding interest"

• "pay yourself first"

Thalia's paycheck: $2,000

Thalia's budget: $1,400

• budget deficit

• budget surplus

• balanced budget

• overdrawn

This decreases the overall, total price of the vehicle when buying a car

• down payment

• APR

• getting a payday advance loan

• Principal on the loan

The best way to build your credit score when using your credit card is to

• make the minimum payments on your balance

• check your credit report

• pay your balance on time and in full

• contact the credit card company