Building Wealth Principles
Wealth is best defined as:
Net worth.
The Federal Reserve is the US':
Central Bank
How many cards are in a standard deck of playing cards?
52.
A bond is best described as:
A loan made by an investor to a borrower.
PRICING:
What is 20% of 55?
11.
Net worth is calculated by:
Assets - Liabilities
One major purpose of the Federal Reserve is to:
Stabalize the financial system
Originally, Amazon only sold what kind of product?
Textbooks.
Lender.
ECONOMIC SYSTEMS:
An economic system is a way a society decides:
What, how, and for whom to produce.
Income is:
Money earned from work or investments
The Federal Reserve helps control:
Inflation
What does DTI stand for?
Debt to Income
The principle of a bond is:
The amount repaid at maturity.
Capitalism is based on the idea of:
Supply and Demand.
Spending omre than you earn results in:
Deficit / Debt.
The Federal Reserve has how many main parts?
3.
What is your largest organ?
Skin.
The maturity date is:
When the bond is repaid.
GOVERNMENT AND THE ECONOMY:
Economic efficiency refers to:
Low inflation, low unemployment, few wasted resources.
Diversification means:
Spreading investments to reduce risk.
Price stability generally means keeping inflation around:
2%
When is “National Ice Cream” month?
July.
Bonds make money primarily through:
Interest payments and selling at a profit.
BUDGETING:
What is the first step when creating a budget?
List out all of your monthly incomes v. expenses.