CIL Personal Finance Review 1

Which of the following is NOT a component of creating a monthly budget?

• Creating Financial Goals

• Calculating Net Worth

• Risk Avoidance

• Assets

What type of interest involves earning interest on both the initial principal and the accumulated interest from previous periods?

• Simple

• Compound

• Variable

• Fixed

Which investment option is typically considered to have the highest risk?

• High-Yield Bank Account

• Stocks

• Savings

• Bonds

What is a key strategy to manage financial risk?

• Creating a Monthly Budget

• Risk Avoidance

• Calculating Net Worth

• Common Budget Strategies

Which of the following is a feature of a 401 K Plan?

• Qualified Tuition Plan

• Money Market Fund

• Investing in Real Estate

• Retirement Savings