Personal Finance Review

This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.

• compound

• sinking

• annual

What is this?

• Credit history

• Credit card

• Credit score

• None of the above

The cost of borrowed money, usually expressed as a percentage.

• interest

• savings plan

• scarce

• purchase

What is a budget?

• A plan for how money will not be used

• A plan for how money will be used

• The amount you spend

• The amount you save

401(k), IRA, and Roth IRA are all examples of a __________ account.

• Retirement

• College Savings

• Low Interest

• Stock

Check all that apply...Which of the following are services offered by both banks and credit unions.

• Checking Accounts

• Savings Accounts

• Roth IRAs

• Credit Cards

The opportunity cost of collecting money for savings in a jar is the

• ability to use the money

• time spent counting the money

• Interest the money could have earned

• cost of the jar

What is the primary purpose of a credit score?

• To determine eligibility for loans

• To calculate annual income

• To assess tax liabilities

• To evaluate spending habits

Which of the following is a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

What is the term for the money set aside for unexpected expenses?

• Investment

• Savings

• Emergency Fund

• Budget