| A | B |
|---|
| Three important economic conditions are consumer prices, consumer spending, and interest rates | TRUE |
| Your wages - deductions equals your take-home pay. | TRUE |
| Which of the following is not a benefit of personal financial planning? | You know how to use credit to achieve your wants |
| Saving Money for a purchase and letting the interest work for you rather than against you | sinking fund |
| Emergency fund goes here | savings account |
| Helps build discipline when saving | Pre-Authorized Saving (PAS) |
| Interest on Interest | Compound interest |
| Key to building wealth | Discipline |
| $500/$1000 | Emergency Fund |
| Which of the following is true according to the time value of money concept? | a dollar today was worth less in the past and will be worth more in the future |
| What makes compund interest so powerful? | interest becomes part of the principal after it is calculated |
| Starting next year you want to take out $500.00 out of your savings account each year for 3 years. You account earns 2% interest. How much do you need to deposit today to make this plan succeed? | $1,442.00 |
| How much do you need to deposit now to accumulate $10,000.00 in 7 years in an account that earns 4%. | $7,600.00 |
| What is the future value of $2400.00 if it is deposited annually for 5 years at 5% annual interest? | $13,262.40 |
| If you deposit $1000.00 in a 6% account today, at the end of year 4 how much will you have? | $1,262 |
| You deposited $2,000.00 in a 2% (annual interest) savings account last year and earned $40.00. How much will you earn the 2nd year? | $40.80 |
| You just deposited $3000.00 in a savings account. The bank will pay you 1.5% annual interest. How much interest will you earn if you keep your money in the bank for one year? | $45 |
| An oil change and a car wash are examples of ____. | services |
| Financial plans that are more than five years off are called | long-term goals |
| A series of equal regular deposits is called ____. | an annuity |
| The amount of goods and services available for sale is called ____. | supply |
| Spending, saving, and investing to have the kind of life you want and financial security can be achieved by ____. | personal financial planning |
| The trade-off made by making one choice instead of another is commonly referred to as a(n) ____. | opportunity cost |
| Earning interest on previously earned interest is called ____. | compounding |
| The ways in which people make, distribute, and use their goods and services is called the ____. | economy |
| Compound interest is calculated 12 times each year when the compounding period is quarterly. | FALSE |
| When you borrow money or pay for items over time, interest is working against you. | TRUE |
| Consumer spending can only affect the economy in a positive way. | FALSE |
| Saving money for the holidays is an example of a long-term goal. | FALSE |
| The main purpose of The Federal Reserve System is to regulate the money supply in the United States economy | TRUE |
| Supply and demand are examples of market forces. | TRUE |
| The main cause of inflation is an increase in demand without an increase in supply. | TRUE |
| Values are the beliefs and principles you consider important, correct and desirable. | TRUE |
