I Am Financial Knowledge Level I English Vocab

Imagine you're planning your finances like a pro! The 10-10-10-70 Principle is:

• Anika's secret to financial success: 10% to savings, 10% to investments, 10% to insurance, and 70% to expenses.

• Kai's time management hack: dividing tasks into 10-minute intervals.

• David's goal-setting magic: evaluating them over 10 days, 10 months, and 10 years.

• A method for improving productivity by working for 10 minutes, resting for 10 minutes, and repeating.

Answer explanation

The 10-10-10-70 Principle refers to allocating 10% of income to savings, 10% to investments, 10% to insurance, and 70% to expenses, making Anika's choice the correct answer for financial planning.

Arjun and Olivia are discussing their finances. Arjun asks, "In financial terms, what does the term 'Balance' refer to?" Can you help them out?

• The amount of money in an account

• A type of financial statement

• A method of budgeting

• An investment strategy

Answer explanation

In financial terms, 'Balance' refers to the amount of money in an account. It indicates the current available funds, making it the correct choice compared to other options like financial statements or budgeting methods.

Imagine Isla and Arjun are planning their finances. Where would they go to borrow and save money?

• Pizza

• A place where people can borrow and save money

• Bank

• A type of food

• Guitar

• A kind of animal

• Dog

• A musical instrument

Imagine you're planning a party with Rohan, Abigail, and Aiden. What would you call the plan for saving and spending money for the party?

• A plan for saving and spending money

• A type of investment

• A financial institution

• A government policy

Answer explanation

The correct choice, 'A plan for saving and spending money', directly describes the financial strategy for the party. The other options do not relate to planning a budget for a party.

Arjun and Samuel are discussing their future plans. Arjun says, "I want a 'career' that means:",

• A job or profession that someone does for a long time

• A short-term employment

• A hobby or pastime

• A temporary position

Answer explanation

Arjun's desire for a 'career' implies a long-term commitment to a job or profession, making 'A job or profession that someone does for a long time' the correct choice. The other options suggest temporary or casual roles.

Imagine you're an entrepreneur like Rohan, diving into the world of business. What does 'Cost' mean in this exciting journey?

• The amount of money required to start a business

• The total expenses incurred in producing a product or service

• The price at which a product is sold

• The profit made from a business venture

Answer explanation

In business, 'Cost' refers to the total expenses incurred in producing a product or service. This includes materials, labor, and overhead, which are essential for understanding profitability and pricing strategies.

Imagine you're on a shopping spree with your friends James, Ethan, and Maya. You come across a magical card that lets you buy anything you want, but there's a catch! What is this card?

• A type of loan

• A payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt.

• A savings account

• A type of investment

Answer explanation

The magical card allows you to buy anything, similar to a payment card that lets you purchase goods based on accrued debt. This aligns with the definition of a payment card, making it the correct choice.

Match the following descriptions with the correct type of financial organization:

• Educational Non-Profit

• a type of bank that is owned and controlled by its members.

• Credit Union

• a non-profit organization that provides educational services.

• Securities and Exchange Commission

• a government agency that regulates financial markets.

• Hedge Fund

• a private investment firm that manages hedge funds.

Imagine you're on a shopping adventure with Nora and James. A Debit Card is:

• A magical card that lets you borrow endless treasure from the bank

• A trusty card that allows you to make purchases using your own gold coins

• A mysterious card used for secret credit transactions

• A special card only for online treasure hunts

Answer explanation

A Debit Card is a trusty card that allows you to make purchases using your own gold coins, meaning it directly deducts money from your bank account, unlike credit cards that involve borrowing.

Harper just found a mysterious envelope labeled 'Deposit' while playing a treasure hunt game at the bank. What does 'Deposit' mean in banking terms?

• A type of loan given by the bank

• A sum of money placed in a bank account

• A fee charged by the bank for services

• A penalty for late payment

Answer explanation

In banking, 'Deposit' refers to a sum of money placed in a bank account. This is the correct choice, as it directly relates to the action of adding funds to an account, unlike loans, fees, or penalties.