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Chapter 3 Review (Saving Money)

Total questions: 9

Worksheet time: 9mins

Name
Class
Date
1.

Which of the following would be considered an emergency fund expense?

a)

Lost cell phone.

b)

Video game sale

c)

Blown car tire

d)

Shoe sale

2.

"Rate of return" is a phrase used to describe what aspect of investing?

a)

Compound growth

b)

Risk and return ration

c)

Accrued interest

d)

Inflation

3.

In The Five Foundation, what is The Third Foundation?

a)

Pay cash for college.

b)

Pay cash for your car.

c)

Save a $500 emergency fund.

d)

Get out and stay out of the debt.

4.

When you make a purchase but later wish you hadn't done so, you experience:

a)

selfishness

b)

buyer's remorse

c)

impulsiveness

d)

time value

5.

Which of the following questions helps you determine if something is actually an emergency expense?

a)

Is it urgent?

b)

Is it necessary?

c)

Is it unexpected?

d)

All of the above.

6.

What two elements do you need to build wealth through compound growth?

a)

An inheritance and a lawyer

b)

Money invested and time

c)

Money invested and good stocks

d)

Time and a wealthy relative

7.

Match the following

a)

45% of Americans have less than $1000 saved for a(n)

1.

emergency fund

b)

The initial amount of money you deposit or invest is called the

2.

principal

c)

The ________ refers to the earning potential of money.

3.

time value of money

d)

_________ deals--such as 90 days-same-as-cash--are often used to get you to buy higher-priced items.

4.

interest rate

e)

______ ______ is the average rate of growth for an investment over a period of time.

5.

Compound growth

8.

Match the following

a)

The price of goods and services increases over time due to

1.

inflation

b)

You save for a(n) ______ ______

when you don't have the cash to buy it now.

2.

large purchase

c)

An investment's _____ __ ______ is it's percentage of gain or loss over time.

3.

rate of return

9.

What are the three reasons to save money?

4 lines