FRIDAY 3/14 Warm Up: Unit 6 vocab

What does an interest rate represent?

• The price of borrowing money

• The cost of insurance on loans

• The profit a bank makes from investments

• A tax imposed on financial transactions

In a _____ budget, revenues and expenses are equal.

• balanced

• deficit

• surplus

The _____ is the central bank of the United States.

• Financial institutions

• Federal Reserve System

• District Banks

_____ accept deposits from depositors and lend money to businesses and consumers.

• Financial institutions

• Federal Reserve System

• District banks

Coins and paper bills make up the _____ of the United States.

• barter

• currency

• debt

Which of these is the most liquid asset? 

• Checks
• Property
• Cash
• Credit

The Fed ______________ banks to ensure the soundness of the banking system.

• regulates
• closes
• opens
• runs

When you take out a mortgage, your home becomes the collateral.

• True

• False

John has just started his first job and is considering his financial options. Why should he consider saving a portion of his salary?

• So he can afford to buy a new car

• To have a safety net in case of unexpected expenses

• To save up for a down payment on a house in the future

• All of the above reasons

Wilder has some assets, liabilities, and owner's equity. Which of the following equations correctly represents John's financial situation?

• Asset = Owner's equity + Liability

• Asset = Owner's equity - Liability

• Asset + Owner's equity = Liability

• Asset + Owner's equity = expense