Chapter 3 Review: Saving Money

An investment's ________ is its percentage gain or loss over time.

• Compound Growth

• Rate of Return

• Interest Rate

• Compound Interest

_________ is the average rate of growth for an investment over a period of time.

• Time Value of Money

• Large Purchase

• Compound Growth

• Rate of Return

The price of goods and services increases over time due to ________.

• Rate of Return

• Interest Rate

• Compound Interest

• Inflation

The initial amount of money you deposit or invest is called the:

• Emergency Fund

• Accrued Interest

• Principal

• Time Value of Money

You save for a(n) ________ when you don‘t have the cash to buy it now.

• Principal

• Time Value of Money

• Large Purchase

• Compound Growth

________ deals—such as 90-days-same-as-cash—are often used to get you to buy higher-priced items.

• Rate of Return

• Interest Rate

• Compound Interest

• Inflation

The _______ refers to the earning potential of money.

• Time Value of Money

• Large Purchase

• Compound Growth

• Rate of Return

The First Foundation is: Save....

• A $5,000 emergency fund.

• A $500 emergency fund.

• A $1,000 emergency fund.

• A $10,000 emergency fund.

Which of the following would be considered an emergency fund expense?

• Lost cell phone

• Video game sale

• Blown car tire

• Sale on shoes

”Rate of return“ is a phrase used to describe what aspect of investing?

• Compound growth

• Accrued interest

• Risk and return ratio

• Inflation