FIN LIT FINAL (PM)

Which of these is an investment?

• A stock
• A credit card
• A phone bill

What is true about a college degree?

• It always guarantees a high-paying job
• It has no value today
• It can help you earn more money over your lifetime

Which type of college financial aid is best?

• Private loans
• Payday loans
• Grants and scholarships

A shorter loan usually means:

• Lower monthly payments
• Higher monthly payments
• Higher total interest

What is a payday loan?

• A short-term, high-interest loan
• A student loan
• A loan with no interest

What affects your credit score?

• Your payment history
• Your age
• Your favorite store

How is saving different from investing?

• Saving always earns more
• Saving is not safe
• Investing has more risk but can earn more

What is one goal of investing?

• To get rich quickly
• To lose money slowly
• To grow your money over time

What is simple interest?

• Interest on the starting amount only
• Interest on interest too
• Interest that changes daily

What is compound interest?

• Only on the starting amount
• Only on loans
• Interest on the starting amount and interest earned