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WorksheetsChapter 1 Introduction
Total questions: 10
Worksheet time: 5mins
Which of the following best explains why students should learn about personal finance?
Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future.
Personal finance skills are better learned through trial and error.
Personal finance skills are highly complex and require a great deal of time to learn.
Learning to manage money will help you achieve a profitable career.
Personal financial success is primarily the result of:
Managing your money behavior
Winning the lottery
Generous welfare and unemployment programs
Inheriting money from your parents
Which of the following statements best explains why income alone does not determine wealth?
Investing is the only factor that contributes to wealth building.
Income alone does determine a personʹs wealth.
Only people who are natural savers can become wealthy.
How much money a person makes does not dictate his or her spending and saving behavior.
Which of the following is a consequence of spending more than you make?
Missed opportunity to save and invest
Stress
A cycle of debt
All of the above
Your _____________ impacts your future self.
past
future
present
beautiful
The "time value of money" means that
money paid out today less value than if the money is paid out in the future
money received today is worth more than the same amount of money received in the future
the more time a person has to save, the lower the return on the money
the longer money is held, the less likely it will be spent
The amount of money a person expects to have in the future is called
Principal
Interest
Present value
Future value
Process of changing future value to the present value known as
Compound
Discount
Simple interest
Principal
Process of changing present value to the future value known as
Principal
Discount
Simple interest
Compound
What is an annuity?
A quoted interest rate where interest is charged more frequently than the basis on which it is compounded
A constant series of cash flows of equal amount, that occurs at regular intervals with no end date
A constant series of cash flows of equal amount, that occurs at regular intervals for a fixed period of time
The interest rate that reduces a given future value to an equivalent present value
