Unit 1.23 Review Financial Planning, Saving, and Investing

Which choice best describes a financial goal?

• Learning to play the cello

• graduating from high school

• renting an apartment

• becoming a banker

What is a long-term goal someone can achieve with a 401(k)?

• Buy a first house.

• Save for a college education.

• Retire from full-time work.

• Purchase an automobile.

What is the correct definition of a projection?

• money, goods, or services a person earns

• an estimate concerning future conditions

• a list of debts and associated interest rates

• an unexpected expense which a persona faces

How can someone meet a financial goal without changing it or the date to achieve it by?

• Increase paycheck withholding.

• Apply for government grants.

• Accept sales incentives.

• Reduce reoccurring expenses.

Which statement best defines net pay?

• the amount an employee has earned after payroll withholding is performed.

• the total earnings of an employee before any taxes are withdrawn from their pay

• the value of all withdrawals made from an employees earnings

• the sum of all earnings of an employee for an given fiscal year.

Which of the following is a reason to purchase bonds?

• To receive a specific, reliable return on your investment

• To make sure you'll be able to withdraw the money quickly

• To guarantee a high rate of return

• To invest in a specific business or company

Which option allows you to pool your money and invest in a portfolio with other investors? (Select the best answer.)

• a 529 plan

• a 401(k) plan

• a mutual fund

• an IRA account

Which type of investment income happens when a company shares its profits with investors?

• dividends

• capital gain

• interest

• rent

A ___________ is an amount of money you've set aside in case of an emergency. (Select the best answer.)

• Will

• Premium

• Risk Policy

• Reserve

What is a discretionary expense?

• An essential expense that satisfies a need

• An expense that does not support your valuews

• An expense that supports your values

• An expense that satisfies a want but is not essential