Investing
You purchased a single bond last year for $970 and know you will receive $1,000 on March 1 2026. This date is referred to as the _______
maturity date
Opportunity costs are only associated with money management decisions involving long-term financial security.
FALSE
Refinancing a mortgage is recommended when interest rates _____
fall/decrease
What does it mean if you are in a budget deficit?
Actual spending is greater than planned spending
What is the most common and costly natural disaster in the United States?
Floods
If you want to double your savings in 6 years, what rate (%) return do you need?
12%
True/False: Generally, options are a conservative, long-term investment
FALSE
Which of the following would increase the equity in a home at a faster rate?
A) Making a down payment of 10 percent instead of 20 percent
B) Obtaining a 15-year mortgage instead of a 30-year
C) Getting a mortgage interest rate of 9% instead of 8%
D) Making larger deposits in your escrow account
B) Obtaining a 15-year mortgage instead of a 30-year
What is the highest FICO score you could have?
850
Stephanie rides his bike to work so that she does not have to worry about getting in a car accident. How is she managing her risk?
Risk Avoidance
What happens if you withdraw funds early from a security deposit?
You get penalized
The financial strength of an insurance company may be a major factor in holding down premium costs for consumers
TRUE
What is one major advantage of renting instead of buying property?
Ease of Mobility
Cheaper upfront costs
No property taxes/maintenance costs
How do you calculate net worth?
Assets (what you own) minus liabilities (what you owe)
Calculating the future value of an investment requires calculating ______ interest
compound
Matt is single and 28 years old. He makes $30,000 a year. What would you recommend for his long-term investment program?
Growth stocks
Medical payments coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others.
FALSE
BONUS 100: What is the correct name for the insurance described here?
You were saying Iceman is a bad album then wake up the next morning with all four of your tires slashed. What type of insurance would cover this damage?
Comprehensive coverage
A personal balance sheet shows your _______
assets & liabilities (net worth)
What is the largest fixed expense associated with an automobile?
Depreciation
A safe investment that generally attracts conservative investors is called a _____ stock
blue chip
Employment in housing-related industries increases and decreases based on changes in interest rates
TRUE
BONUS 100: If interest rates are high, do real estate agents make more or less $?
What is the purpose of a security deposit?
To cover damages that may occur during the lease period
What are liquid assets?
Cash and items of value that can be easily converted to cash
What is the definition of "opportunity cost"
What a person gives up by making a choice