Money Matters

What is the meaning of saving?

• Investing in stocks

• Spending money recklessly

• Setting aside money for future use

• Borrowing money from friends

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Define investment in simple terms.

• Putting money in a savings account

• Spending money on groceries

• Donating to charity

• Allocation of money or resources with the expectation of generating income or profit.

Explain what simple interest is.

• Simple interest is an amount of money received by anyone who saved money in a bank within a period of time.

• Simple interest is calculated by dividing the principal amount by the interest rate and the time period.

• Simple interest is calculated by subtracting the principal amount from the interest rate and the time period.

• Simple interest is calculated by adding the principal amount to the interest rate and the time period.

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Can you explain compound interest?

• Compound interest is the same as simple interest.

• Compound interest is the interest calculated only on the initial principal amount.

• Compound interest decreases over time.

• Compound interest is an interest received from the savings and interest collected each year. It grows exponentially over time.

What are the differences between using a credit card and cash?

• The expiration date of the card

• The size of the bills

• The main differences between using a credit card and cash are the involvement of borrowing money, interest charges, and the physical form of payment.

• The color of the card

How can saving money help you in the future?

• By spending all your money immediately

• By relying solely on credit cards

• By avoiding any financial planning

• By providing financial security during emergencies, allowing for major purchases like a house or car, and enabling retirement savings to ensure a comfortable future.

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Why is it important to understand the concept of investment?

• It is important to understand the concept of investment to make informed financial decisions and achieve long-term financial goals.

• Understanding investment is irrelevant for financial decisions

• Investment concepts are only useful for short-term goals

• Not knowing about investment leads to better financial outcomes

Define what is credit.

• Thing that we use to make a call to someone via phone.

• Is a loan needed to be paid by someone

• Type of loan, a convenience to pospone the payment of the item purchased

• a type of traditional food.

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How does compound interest differ from simple interest?

• Compound interest is not affected by the principal amount, while simple interest is.

• Compound interest is always higher than simple interest.

• Compound interest is calculated annually, while simple interest is calculated monthly.

• Compound interest considers interest on interest, while simple interest does not.

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In what situations is it better to use a credit card instead of cash?

• When you want to avoid debt

• When you are trying to build credit history

• When you prefer physical money

• When making large purchases for convenience, security, and potential rewards.