Financial Literacy Chapter 2

Mason started planning and saving for his retirement at the age of 25, while Aria began at 35 and James at 45. The age at which they began planning and saving is unlikely to affect the age at which they will be able to retire.

• TRUE

• FALSE

Tags

CCSS.HSF-LE.A.1B

Benjamin is planning to buy a new car. He believes that getting insurance for his car is an essential part of managing his risk. Is Benjamin correct?

• TRUE

• FALSE

Scarlett, Ethan, and Daniel are running a small business. They consider liquid assets as cash and assets that can be quickly and easily turned into cash. Is this correct?

• TRUE

• FALSE

Mia, Nora, and Priya are discussing their future careers. Mia believes that in general, more education and specialized training leads to a higher income. Is Mia's statement true?

• TRUE

• FALSE

Tags

CCSS.RL.11-12.3

CCSS.RL.6.3

CCSS.RL.7.6

CCSS.RL.8.6

CCSS.RL.9-10.3

Michael took a loan to buy a car. This loan is considered as a liability.

• TRUE

• FALSE

Scarlett gifted a car to Candace on her birthday. This car is now considered one of Candace's assets.

• TRUE

• FALSE

Abigail, Nora, and Olivia are discussing their finances. Abigail says that to calculate net worth, you subtract your liabilities from your income. Is this statement correct?

• TRUE

• FALSE

Abigail, Hannah, and Henry are planning for their retirement. They are determining how much to save for retirement every year ________ and how to invest that money.

•  after they turn 30

• as early as possible

• after they turn 40

• after they turn 50

Michael, Jackson, and Scarlett are roommates. After paying their necessary bills like rent and utilities, the money they have left tends to go towards ________.

• INSURANCE

• LIQUIDITY

• EQUITY

• INVESTMENTS

Nora, Benjamin, and Avery are discussing their financial plans. They all agree that stocks, bonds, mutual funds, and real estate are common types of ________.

• LIABILITIES

• LIQUID ASSETS

• INVESTMENTS

• INSURANCE