Personal Finance Flashcard

Front

Hannah, Grace, and Olivia are planning their monthly budget. Which of the following is an example of a fixed expense they might have? Groceries, Dining out, Entertainment.

Back

Rent or mortgage

Front

What does APR stand for in the context of loans?

Back

Annual Percentage Rate

Front

Which type of account typically offers the highest interest rate to maximize earnings: Checking account, Savings account, Certificate of deposit (CD), Money market account?

Back

Certificate of deposit (CD)

Front

When should you start saving for retirement according to the discussion among William, Aiden, and Nora?

Back

In your 20s

Front

In real life, what does diversification in investment mean?

Back

It means William spreads his investments across different assets.

Front

Abigail, Luna, and Evelyn were involved in a minor car accident. They want to claim insurance to cover the damages to their vehicles. Which type of insurance should they claim?

Back

Auto insurance

Front

What does 'FICO' stand for?

Back

Fair Isaac Corporation

Front

Michael and Aiden are reviewing their personal financial statements after attending a financial literacy workshop. Which of the following items would be considered a liability on their financial statements? Savings account, Car loan, Retirement fund, College scholarship

Back

Car loan

Front

What is the main purpose of having an emergency fund?

Back

To cover unexpected expenses

Front

David, Lily, and Noah are discussing ways to make money from owning stocks in a real-world scenario. Which option do they agree upon? Renting them out, Receiving dividends, Selling them to the government, Trading them for real estate

Back

Receiving dividends