Final Review

What is the first step in creating a budget plan?

• List all your debts

• Determine your income

• Set financial goals

• Track your expenses

Which of the following is a fixed expense?

• Groceries

• Rent

• Entertainment

• Dining out

If you save $1000 in a savings account with an annual interest rate of 5%, how much interest will you earn in one year?

• $50

• $100

• $150

• $200

Which of the following is a high-risk investment?

• Government bonds

• Savings account

• Stocks

• Certificate of deposit

What is the primary purpose of insurance?

• To increase wealth

• To protect against financial loss

• To save for retirement

• To pay off debts

Which of the following is an example of consumer credit?

• Mortgage

• Personal loan

• Credit card

• All of the above

What is the minimum payment on a credit card?

• The full balance

• A percentage of the balance

• The interest only

• A fixed amount

How can you reduce your credit card debt effectively?

• Pay only the minimum payment

• Transfer the balance to another card

• Pay more than the minimum payment

• Stop using the card

What is the formula to calculate simple interest?

Which of the following is a variable expense?

• Mortgage payment

• Utility bills

• Car insurance

• Gym membership