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WorksheetsPESH Econ Unit 5 (personal finance)
Total questions: 29
Worksheet time: 28mins
Which is the most costly and least desirable payment for a revolving balance account? (Such as a credit card)
Paying only the minimum monthly
Paying the entire balance every month
Pay 1/2 this month and 1/2 next month
Pay more than the minimum monthly
A persons credit rating is defined by all of the following EXCEPT
Amount of money owed
Number of stocks owed
Past payment history
Length of credit history
When expenses exceed income in a budget, it is
a surplus
a deficit
at equilibrium
in a period of stabilization
When choosing a financial investment, 3 important criteria are
Inflation, taxes, collateral
Collateral, liquidity, dividends
Risk, rate of return, liquidity
Size, taxes, risk
The government agency that regulates the sale of securities and the firms that sell them is
FDIC
I RS
Department of commerce
Securities and Exchange Commission
A loan made by a person to a business or government
Dividend
Stock
Mutual fund
Bond
The interest paid on unpaid credit balances is called
Installment payment
Minimum balance
Finance charge
Rate of return
Spreading investments widely across different industry sectors and different investment types is called
Technology
Risk and return
Diversification
Net asset value
The price associated with using someone else’s money
Interest
Lending
Borrowing
Risk
What percentage of income should people save?
5%
12%
10%
18%
The amount of expenses that a person must pay out of pocket before insurance will cover any expenses
Deductible
Premium
Principal
Coverage
Fixed, adjustable, balloon, reverse… Examples of...
Mortgages
Payments
Bankruptcy
Insurances
When making a purchase on credit, the original amount borrowed is called
APR
Principal
Minimum payment
Interest
The ease with which an asset can be turned into cash is
Liquidity
Savings
Net worth
Net income
The original issuance of a stock is called
Credit score
Mortgage
Stock traDe
IPO – initial public offering
Redirecting resources from being consumed today so they will create future benefit is called
Free enterprise
Investment
Credit
GDP
Stocks are
Tax payments
Fixed expenses
Certificates of debt
Shares of ownership in a corporation
What enables a person to trade the risk of a big glass for the certainty of small periodic payments
Savings
Compound interest
Credit
Insurance
What is the general relationship between risk and return?
It is uncertain
The higher the risk, the higher the potential return
The higher the risk, the lower the potential return
There is no relationship
The difference between a persons assets and liability is called
Buying on the margin
Assets liability equation
Net worth
Credit score
Why is it important to begin saving at an early age ?
Older people do not need to save
Allows savers to gain more interest for a long time
The government requires a certain amount before you can retire
Employers require employees to save $
What is the main role of a credit bureau?
Track the bill paying habits of customers
Provide credit counseling advice and service
Check credit applications for retirement plan
Extend credit to qualified buyers
The annual percentage rate is (APR)
The percent of the credit that a person must pay every year
The interest rate CHARGED that is a percent per year
The interest rate EARNED that is a percent per year
The amount of credit the customer has available
What is a collection of stocks and bonds managed by an investment company?
Maturity
US treasury bond
IRA
Mutual fund
What is considered one of the safest form of investments which is a loan to the US government?
Mutual fund
Portfolio
US treasury bond
IRA
What is a long-term, tax sheltered investment that can be set up as part of retirement?
Mutual fund
IRA
Portfolio
US treasury bond
At what point are you able to collect on an investment?
Anytime
At maturity
When the treasury department says So
Never
What is a collection of financial assets called?
Portfolio
Mutual fund
IRA
Treasury bond
If you are reading a stock market report, what column would tell the number of shares traded?
Vol
Div
Hi
Lo
