Personal Finance Investing

If you aren't careful, _________ can really catch up with you and put you in debt. _________ is the fee added to the amount of money you borrow, like when you use a credit card or take out a loan.

• credit

• debit

• income

• interest

Chandler has a choice to make. He can invest his money in Google, or he can buy a small house that needs lots of fixing up. He's facing a(n) _______________, which is when you have to make a choice but give up other decisions. If he invests in Google, he won't be able to buy the small house. If he buys the small house, he won't be able to invest in Google.

• opportunity cost

• investment

• income

• stock market

Learning about ________________ might not always be fun, but it can help people avoid money problems in life.

• communism

• personal finance

• the stock market

Hidalgo is moving out of his parents' house for the first time. He now has new costs, including utility bills, rent, food, and gas. He has to plan carefully for all these new expenses so he doesn't spend his whole paycheck at once. He needs to make a ___________.

• Budget

• Loan

• Deposit

• Credit

Investing and saving = smart personal finance. But sometimes ______________ your money is more fun, especially if you want to eat a nice meal or take a trip. ___________ too much can put you in debt though.

• saving

• spending

• income

• crediting

What is the primary purpose of a 401(k) plan?

• A) To provide a savings account for emergencies

• B) To offer a tax-advantaged retirement savings plan

• C) To insure against unemployment

• D) To fund higher education expenses

Which of the following is considered a low-risk investment?

• A) Stocks

• B) Bonds

• C) Real estate

• D) Savings account

What is the term for the profit made from selling an asset for more than its purchase price?

• A) Dividend

• B) Interest

• C) Capital gain

• D) Yield

Which type of investment is typically associated with ownership in a company?

• A) Bonds

• B) Stocks

• C) Mutual funds

• D) Certificates of deposit

What is the main advantage of diversifying an investment portfolio?

• A) Maximizing returns

• B) Reducing risk

• C) Increasing liquidity

• D) Minimizing taxes