Personal Finance 2

What is a budget?

• A budget is a financial plan that estimates income and expenses for a specific period of time.
• A budget is a term used to describe a large amount of money.
• A budget is a type of musical instrument.
• A budget is a document that tracks personal fitness goals.

What is a variable expense ?

• An expense that is unexpected and not budgeted for.
• An expense that is paid for with cash.
• An expense that is incurred after the budget is finalized.
• A planned expense that can change each month.

What is a certificate of deposit ?

• A certificate of deposit is a type of insurance policy that protects against losses in the stock market.
• A certificate of deposit is a type of loan that individuals can take out from a bank or credit union.
• A certificate of deposit is a type of credit card that allows individuals to make purchases and pay them off over time.
• A certificate of deposit is a financial product offered by banks and credit unions that allows individuals to deposit money for a fixed period of time at a fixed interest rate.

What is a stock ?

• A stock is a type of investment that represents ownership in a company.

• A stock is a type of commodity that can be traded on the stock exchange.
• A stock is a type of currency used in the stock market.
• A stock is a type of bond that pays a fixed interest rate.

What is a mutual fund ?

• A mutual fund is a government bond.
• A mutual fund is a form of insurance.
• A mutual fund is an investment that contains a variety of stocks.

• A mutual fund is a type of bank account.

What is a bond ?

• A bond is a type of currency used in international trade.
• A bond is a form of insurance that protects against financial loss.
• When a person loans money to the government or business and gets money bak plus interest.

• A bond is a type of stock that represents ownership in a company.

What is safer ?

• Stocks

• Physical asset

• Savings

Which investment provides diversification ?

• Stocks

• Mutual Funds

• Budget

What financial institurion is owned by its members and usually has higher interest on savings ?

• BANK

• CREDIT UNION

• TITLE PAWN LENDER

What financial institution loans out money at very high interest rates ?

• BANKS

• CREDIT UNIONS

• TITLE PAWN LENDERS