ECON Final Review

This type of card is linked to a checking account for everyday purchases

• Credit

• Debit

• Prepaid

• Gift

This type of card advances you money for purchases with a preset limit

• Credit

• Debit

• Prepaid

• Gift

Anything of value such as property, money, or belongings

• Credit

• Debt

• Asset

• Income

A short term loan to the government with a fixed rate of return

• Stock

• Bond

• Income

• Tax

Answer explanation

Most commonly a savings bond or treasury bond

The amount of money you earn before taxes

• Gross

• Net

• Interest

• Taxes

The amount of money you make after taxes; take home pay

• Gross

• Net

• Principal

• Social Security

According to the Overflow Savings Strategy, how much should you have in your Savings Account at any given time?

• $5,000

• Enough to cover monthly bills

• Enough to cover 6 months' worth of bills

• All extra money you get...FOREVER!

Answer explanation

Savings Accounts are for emergencies and short term saving

A share or portion of ownership in a company

• Asset

• Stock

• IRA

• Dividend

Answer explanation

Buying 100 shares of Apple stock means you own a small (very small) portion of the company

Federal money awarded to college-bound students based on financial need

• Pell Grant

• Stafford Loan

• IRA

• Dividend

Money earned on an investment or paid to a lender for the use of a loan

• Principal

• Interest

• Credit

• Debt