Midterm

Question 1

Saving money for a purchase and letting the interest work for you rather than against you

Answer 1

Sinking fund

Question 2

Money is neither good nor bad.

It is..

Answer 2

Amoral

Question 3

Completed emergency fund goes here..

Answer 3

Money Market Mutual Fund

Question 4

Interest on interest

Answer 4

Compound interest

Question 5

“If it can go wrong, it will”

Answer 5

Murphy’s Law

Question 6

Baby Step 1:

Answer 6

$500/$1000 in an emergency fund

Question 7

Baby Step 2:

Answer 7

3-6 months of expenses

Question 8

Key to wealth building..

Answer 8

Discipline

Question 9

How many baby steps are there?

Answer 9

7

Question 10

Saving is about contentment and..

Answer 10

Emotion

Question 11

PACs:

Answer 11

Pre-Authorized Checking

- helps build discipline when saving

Question 12

For most families, a fully funded emergency fund will be about…

Answer 12

$8,000 or more

Question 13

Used to do a budget..

Answer 13

Monthly cash flow form

Question 14

Used by persons earning an inconsistent monthly income..

Answer 14

Irregular income form

Question 15

Process used to determine if the balance in your checking registry matches the balance reported on the bank statement..

Answer 15

Reconciliation

Question 16

Another name for cash flow plan

Answer 16

Budget

Question 17

Helps people who forget to record checks in their register after writing them

Answer 17

Duplicate checks

Question 18

A written budget should be done every..

Answer 18

Month

Question 19

You need to reconcile your bank statement once every year..

Answer 19

False

Question 20

The way you view the world..

Answer 20

Paradigm

Question 21

Charges 400% and up for their services:

Answer 21

Cash advance

Question 22

Money loaned:

Answer 22

Credit

Question 23

A mortgage that does not have a fixed interest rate:

Answer 23

ARM

Question 24

Taking responsibility for someone else’s loan

Answer 24

Consigning

Question 25

Combining several debts into one payment

Answer 25

Debt consolidation

Question 26

Long term rental agreement

Answer 26

Leasing

Question 27

A lack of time which leads to stress:

Answer 27

Time poverty

Question 28

Borrowing money and paying overtime:

Answer 28

Financing

Question 29

Number of advertisements a person views daily:

Answer 29

3,000

Question 30

Caveat Emptor:

Answer 30

Buyer beware

Question 31

Spending $60 on the last eat game or give it to charity:

Answer 31

Opportunity Cost