Foundations in Personal Finance Unit 3

The ability to walk away from a purchase when negotiating

• Integrity

• Auction

• Cost-Benefit

• Walk-Away Power

Why does using cash make a great bargaining tool?

To bargain for a lower price

• Negotiate

• Auction

• Yard Sale

• Foreclosure

True/False. Being married (or emotionally attached) to a purchase will cause you to lose bargaining power

The difference between the wholesale price and retail price.

• Black Friday

• Negotiate

• Sale price

• Markup

The degree of uncertainty of return on an asset is

• Liquidity

• Share

• Risk

• Investment

A retirement savings plan offered by a corporation to its employees; the employee contributes money from his/her gross pay, and the money grows tax deferred is

• 401(k)

• Investment

• Portfolio

• Insurance

True/False A single stock would be a good place to keep you emergency fund.

Explain why you should never invest using borrowed money.

True/False Diversification lowers risk with investing.