Financial Literacy Midterm Review

Which of the following names is written properly below.

• Susan J.

• susan jones

• S. Jones

• Susan Jones

Something you can live without but it does make your life more comfortable.

• Want
• Need

Simple interest is calculated on

• principal
• principal + interest

Compound interest is interest that is paid (or received) on

• principal only
• principal + interest

Interest is a sum paid or charged for the use of money or for borrowing.

• True
• False

Return on Investment is equivalent to the initial cost of the investment less its final value.

• True
• False

Policies refer to covered events as “perils.”

• True
• False

A standard homeowner's policy pays to repair or rebuild your home if it is damaged or destroyed by a flood, an earthquake, your children, or your pets.

• True
• False

A homeowner's insurance policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, or lightening.

• True
• False

The amount borrowed (I sometimes say the original amount of the loan) is

• principal
• optimal
• oatmeal
• lender