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Ramsey Chapter 3

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

a savings account set up specifically to be used to cover financial emergencies

a)

Emergency Fund

b)

Time Value of Money

c)

Large Purchase

d)

Compound Growth

2.

the persistent rise in the cost of goods and services over time

a)

Inflation

b)

Compound Growth

c)

Emergency Fund

d)

Large Purchase

3.

a purchase that requires a significant amount of money

a)

Large Purchase

b)

Rate of Return

c)

Principal

d)

Inflation

4.

the amount of interest charged on a debt but not yet collected; interest accumulates from the date a loan is issued

a)

Accrued Interest

b)

Compound Growth

c)

Compound Interest

d)

Rate of Return

5.

the measure of an investment’s profit or loss, usually expressed as a percentage of the initial investment

a)

Rate of Return

b)

Accrued Interest

c)

Compound Growth

d)

Interest Rate

6.

interest paid on interest previously earned

a)

Compound Interest

b)

Accrued Interest

c)

Compound Growth

d)

Interest Rate

7.

the percentage of principal charged by the lender for the use of its money

a)

Interest Rate

b)

Accrued Interest

c)

Compound Interest

d)

Compound Growth

8.

the initial amount of money invested or borrowed

a)

Principal

b)

Inflation

c)

Rate of Return

d)

Time Value of Money

9.

concept that an amount of money is worth more today than in the future due to earning potential

a)

Time Value of Money

b)

Inflation

c)

Rate of Return

d)

Compound Growth

10.

the average rate of growth for an investment over time; often expressed as an annual figure

a)

Compound Growth

b)

Principal

c)

Rate of Return

d)

Compound Interest