Consumer Math B Unit 4 Review

What is venture capital?

• a type of government grant for startups

• an investment made into start-up companies

• a loan provided to established companies

• government funding for non-profit organizations

All of the steps listed below are important for a person's financial well-being. However the most important first step a young adult should make, toward financial stability is to:

• close all credit cards.

• begin saving for retirement

• pay off any credit card debt

• save for an emergency fund

The type of investment with the highest risk is: (a)   . Therefore, this investment strategy is not typically considered a "savings instrument".

• 401K

• Bonds

• Stocks
• CD (certificate of deposit)

• Savings Account

You ___ your savings when you place it into different types of accounts.

(a)  

• diversify
• differentiate
• divide
• dilute
• monopolize

When purchasing a home, (a)   is usually required for the ​ (b)   .

• a lump sum
• a credit account

• a reference
• a loan
• downpayment
• property taxes
• homeowner's insurance

Which of the following typically involves a written contract?

Select all that apply.

• borrowing money from a family member

• apartment rental with an annual lease

• credit card application

• vehicle lease

• purchase at a store

Another way of saying "return on investment" is simply (a)   .

• net investments
• risks and rewards
• pros and cons
• gains and losses
• principal and interest

People can purchase savings bonds through ​ (a)   .

• a retail store
• the stock market
• a grant application
• the US Treasury

You want to buy a used car for $12,800.00 plus 6.25% sales tax. You want to make a 5% down payment on the total price. How much is your down payment?

Mathematical Equivalence

ON

You want to buy a house in 5 years. The estimated cost is $325,000.00. You want to make a 20% down payment of ​ (a)   . Closing costs are 7%, or ​ (b)   . To cover the closing costs and downpayment in 5 years, you will need to save ​ (c)   each month.

• $32,500
• $18,200
• $65,000
• $22,750
• $1462.50
• $1386.67