Econ Final Review

What is a budget deficit?

• You have money left over after paying bills

• You have just enough money to pay your bills

• You do not have enough money to pay your bills.

Are mortgage payments and utilities the only costs associated with home ownership?

• Yes

• No, you also need to budget for parties.

• No, you do not need to pay your mortgage.

• No, you also need to budget for emergency repairs and maintenance

A secured loan is a loan that

• Has no interest

• Is secured by collateral, something that can be taken away if the borrower does not pay their loan

• Can only be used for a mortgage

• Is only available to college graduates

Secured loans have ________ interest rates than unsecured loans

• The same

• higher

• lower

Those with a ________ credit score will get a _________ interest rate on their loan and have a ________ monthly payment.

• lower; lower; lower

• lower; higher; lower

• lower; lower; hgiher

• higher; lower; lower

All of the following are BAD financial decisions EXCEPT

• Paying just the minimum payment on your credit card

• Saving less money for the future

• Reducing spending

• Applying for extra credit cards

A short-term goal is one to be accomplished within....

• a day

• a week

• a year

• 30 years

Medium term goals take _______ while long term goals take______

• 1-5 years:

  5-25 years

• 1-5 years:

  5-25 years

CD (Certificate of Deposit) allow you to earn _______ interest and the money is _____ to access

• lower: easy

• higher; easy

• higher; hard

• lower; hard

Your emegency fund should be equal to six months of

• car payments

• mortgage payments

• Netflix payments

• total expenses