Financial Math Semester 1 Post Test

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What are bonds?

Back

Bonds are debt securities issued by companies or governments to raise capital, typically in increments of $1,000.

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What is personal finance?

Back

Personal finance is the management of individual or household financial activities, including budgeting, saving, investing, and planning for future financial needs.

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What is cash outflow?

Back

Cash outflow refers to the money that is spent or paid out, such as expenses for entertainment, bills, or purchases.

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What does it mean to forecast income?

Back

To forecast income means to predict the amount of money one will receive in the future, based on current information and trends.

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What is equity in financial terms?

Back

Equity represents the ownership value in an asset, such as a vehicle or property, after subtracting any liabilities associated with it.

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What is opportunity cost?

Back

Opportunity cost is the value of the next best alternative that is forgone when making a decision.

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What is liquidity?

Back

Liquidity refers to how easily an asset can be converted into cash without affecting its market price.

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What is budgeting?

Back

Budgeting is the process of creating a plan to manage income and expenses over a specific period.

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What is cash inflow?

Back

Cash inflow is the money received by an individual or organization, such as income from wages, investments, or sales.

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What is the difference between fixed and variable expenses?

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Fixed expenses remain constant over time (e.g., rent), while variable expenses can fluctuate (e.g., groceries).