Living the Dream Project Test Review

This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.

• compound
• sinking
• annual

Cost of credit expressed as a yearly percentage 

• Mortgage
• Principal
• APR
• Finance company

401(k), IRA, and Roth IRA are all examples of a __________ account.

• Retirement
• College Savings
• Low Interest
• Stock

This term refers to the original amount of a loan OR the original amount of money invested. 

• Principal
• Interest
• Rebate
• Fixed Rate

The availability of money; how quickly you can convert it into cash in your hand is its _______.

• diversity
• liquidity
• yield
• gratuity

Which budget item will most likely take up the largest percentage of your income at 25-30%?

• transportation

• housing

• groceries

• saving/investing

A financial product purchased by many people facing a similar risk to protect against the risk of larger losses

• Premium

• Policy

• Insurance

• Risk

• Deductible

The chance of loss from an event that cannot be entirely

controlled

• Premium

• Policy

• Insurance

• Risk

• Deductible

The out‐of‐pocket money paid by the policyholder before an

insurance company will cover the remaining costs attributed to the loss

• Premium

• Policy

• Insurance

• Risk

• Deductible

Which is the correct type of insurance that would be used: David’s mother is killed in an automobile accident. What type of insurance would provide his family financial support to cover the paid and unpaid work his mother performed?

• Property and liability

• Health

• Life

• Disability

• Workers’ compensation