Personal Finance

Front

What is the primary purpose of a budget?

Back

Track and control spending

Front

Which one of the following is considered a fixed expense? Groceries, Rent or mortgage, Dining out, Entertainment

Back

Rent or mortgage

Front

What does APR stand for in the context of loans and credit cards?

Back

Annual Percentage Rate

Front

How does diversification contribute to the investment risk management?

Back

Reduces risk

Front

What is the purpose of an emergency fund?

Back

Covering unexpected expenses

Front

What is the 50/30/20 rule used for in personal finance?

Back

Budgeting

Front

What is the purpose of a credit score?

Back

Assess creditworthiness

Front

Compound Interest

Back

Interest calculated on both the principal and accumulated interest

Front

How does a Roth IRA differ from Traditional IRA?

Back

Roth IRA withdrawals are tax-free in retirement.

Front

What is the purpose of insurance?

Back

Protect against financial losses