unit 6 review

Imagine Henry, Ethan, and Noah are playing a treasure hunt game. They need to understand how money acts as a measure of value. This means:

• it is easily recognizable by everyone in the game

• can be broken up into smaller units for easy trading

• money may be stored in their treasure chest for future use

• expresses worth in terms that all players can understand

Imagine Benjamin, Ava, and William are discussing investment options at a fun finance-themed party. Benjamin raises a question that sparks everyone's interest: 'Which of the following has the highest level of investment risk?'

• Savings accounts

• Retirement Accounts

• Index Funds

• Stocks

Imagine Aiden is exploring the world of home ownership. He stumbles upon an online amortization tool. What exciting feature can it show him?

• who has the best mortgage rates

• what are the current mortgage rates

• how mortgage payments on a fixed loan can look from month to month

• how speculative investments on a fixed loan can look from month to month

Imagine Emma, Avery, and William are on a treasure hunt. They find a chest full of coins! Now, they're curious about the exchange of money. What does it refer to?

• how much my money is worth

• how easy I can spend my money in a store

• how much money I have in my bank account

• how long money can last over time

Imagine Daniel, Grace, and Anika are on a treasure hunt. They find a chest full of gold coins! Before they start dreaming about spending their riches, they want to calculate the amount of money they've found, but WITHOUT taking into account pesky pirates' taxes and the inflation caused by too many gold coins flooding the market. This calculation refers to:

• real returns

• simple interest rates

• apr

• nominal returns

Imagine Aria, Nora, and Priya are discussing investment options for their new club. They want something with the lowest level of investment risk. Which option would you recommend to them?

• Stocks

• Savings accounts

• Retirement accounts

• Certificates of Deposits (CD’S)

Imagine Aria walks into a pawn shop with a vintage guitar. After how many missed payments will the shop officially keep Aria's guitar?

• One

• Two

• Three

• Four

Imagine Rohan, Aiden, and Anika are on a treasure hunt. They find a chest full of gold coins! But here's the twist: the chest comes with a note explaining the yearly interest generated by a sum that's charged to borrowers or paid to investors. What is this interest called?

• annual percentage rate

• yearly percentage rate

• multiple percentage rate

• among the percentage rate

Imagine Avery, Anika, and Maya decided to invest in a lemonade stand! After a sunny day of sales, they sit down to calculate the amount of money they've made AFTER taking out all the expenses like the cost of lemons, sugar, and even the sneaky inflation and taxes. What is this called?

• Nominal returns

• Real returns

• Simple interest rates

• APR

Let's dive into a finance adventure! Imagine Mia and Mason are on a quest to understand variable rates. They come across a wise owl named Aria who presents them with a challenge: (T/F) Variable rates are rates that are set as a certain percentage for the life of the loan and will not change. Can you help them answer?

• True

• False

• Sometimes

• Maybe