AFA Review for Final Exam (Part 1)

Inflation is...

• the general rise in product prices and a fall in the purchasing value of a dollar.

• the general fall in product prices and a rise in the purchasing value of a dollar.

• when you blow up a balloon.

• the rise in your bank savings account balance because of interest earned.

Jessica is going to buy a $10.00 box of candy. She will pay 3% sales tax. How much will Jessica pay in total for the candy?

• $13.00

• $3.00

• $0.30

• $10.30

Tags

CCSS.6.RP.A.3C

How do you avoid paying interest on your credit card?

• Always make the required minimum payment each month

• Make the minimum required payment

• Always pay off the full balance on the card

• Pay the principal 1st, then pay what you can on interest

A shorter loan term means ____ monthly payments & ____ total interest you'll pay.

• higher, less

• lower, more

• higher, more

• lower, less

Tags

CCSS.7.RP.A.3

Your net worth...

• is what you owe minus what you own

• is your assets minus your liabilities

• is your liabilities minus your assets

• is how much money you make

Tags

CCSS.7.NS.A.1B

Which types of debt usually CANNOT be erased or reduced by bankruptcy?

• Federal student loans

• Credit card debt

• Medical bills

• None of these types of debt can be erased or reduced

The total amount of money you receive in a paycheck before anything is taken out is called ______, while your 'take home' pay is called ______.

• net pay; gross pay

• credit; savings

• income; taxes

• gross pay; net pay

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

Which of the following would generally be considered the highest risk investment type?

• Single Company Stock

• Mutual Fund

• Bond

• Money Market Account

Diversifying your investment portfolio helps...

• limits investment choice

• predict profit

• increase risk and return

• reduce risk

Tags

CCSS.3.NF.A.1

CCSS.3.NF.A.2B

Why is it important to start investing as soon as possible?

• You take less risk when you are young, so money will be safe

• You have more time for your money to compound

• Investing is an easy way to make quick money

• Fees on investments are cheaper when you are younger