AFA Review for Final Exam (Part 1)

Inflation is...

• the general rise in product prices and a fall in the purchasing value of a dollar.

• the general fall in product prices and a rise in the purchasing value of a dollar.

• when you blow up a balloon.

• the rise in your bank savings account balance because of interest earned.

Jessica is going to buy a $10.00 box of candy. She will pay 3% sales tax. How much will Jessica pay in total for the candy?

• $13.00

• $3.00

• $0.30

• $10.30

Tags

CCSS.6.RP.A.3C

How do you avoid paying interest on your credit card?

• Always make the required minimum payment each month

• Pay interest 1st, then pay what you can on leftover balance

• Always pay off the full balance on the card before interest is calculated

• Pay the principal 1st, then pay what you can on interest

Chris wants to borrow $24,000 to buy a new truck. The credit union has offered him an APR of 7.5% for 6 years. How much will his monthly payment be if he takes the loan?

• $4087.95

• $340.99

• $1519.32

• $414.96

Tags

CCSS.8.EE.C.7B

A shorter loan term means ____ monthly payments & ____ total interest you'll pay.

• higher, less

• lower, more

• higher, more

• lower, less

Tags

CCSS.7.RP.A.3

Your net worth...

• is what you owe minus what you own

• is your assets minus your liabilities

• is your liabilities minus your assets

• is how much money you make

Tags

CCSS.7.NS.A.1B

Which types of debt usually CANNOT be erased or reduced by bankruptcy?

• Federal student loans

• Credit card debt

• Medical bills

• None of these types of debt can be erased or reduced

The total amount of money you receive in a paycheck before anything is taken out is called ______, while your 'take home' pay is called ______.

• net pay; gross pay

• credit; savings

• income; taxes

• gross pay; net pay

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

Which of the following would be considered the highest risk investment type?

• Stock

• Mutual Fund

• Bond

• Money Market Account

A diversified portfolio is desirable because

• It limits investment choice

• It's a good predictor on rate of return

• It increases risk and return

• It decreases risk