Straight Outta Everfi
The primary purpose of investing compared to saving is this.
What is to potentially grow money over time?
This term means giving up current consumption for future consumption.
What is saving?
You’d take $1,000 now instead of in 10 years because of this economic concept.
What is the time value of money
A sustained increase in the average price level over time
What is inflation?
This housing option usually involves shared walls.
What is a townhouse?
This is considered an equity investment.
What is stock?
This term refers to the current value of a future sum of money.
What is present value?
This law protects renters from discrimination.
What is the Fair Housing Act?
The value of the next best alternative you give up is called this.
What is opportunity cost?
This is a benefit of renting a home instead of buying.
What is avoiding maintenance costs?
Bonds are best described as having this compared to stocks.
What is lower risk and more predictable returns?
This is the current value of a future sum of money, given a specified rate of return.
What is present value?
A Virginia rental agreement must include this information.
What is the landlord’s name and address?
This field studies how psychology influences economic decisions.
What is behavioral economics?
20%
What is the average amount of the down payment required to buy a house.
Diversification is important because it does this.
What is spreads out risk across different assets?
This payment is made in advance of a rental as a guarantee against nonpayment or damage.
What is a security deposit?
If a tenant objects to a rent increase in Virginia, they can do this.
What is vacate within 30 days?
This factor can influence decisions beyond costs and benefits.
What is framing of information?
This payment is made upfront as a guarantee against damage or nonpayment.
What is a security deposit?
This scenario best fits using a savings account instead of investing.
What is building an emergency fund for unexpected expenses?
This agreement allows you to borrow funds to purchase real property and repay over time with interest.
What is a mortgage?
Landlords cannot discriminate based on these three factors.
What are race, religion, and national origin?
Offering equal pay for equal work is an example of this concept.
What is fairness in economics?
This is one advantage of buying a car instead of leasing.
What is ownership after payments?
The stock exchange allows companies to do this and investors to buy ownership.
What is raise capital?
This term refers to electricity, gas, water, sewer, and other services provided to a home.
What are utilities?
This is a legally binding agreement between tenant and landlord.
What is a lease?
Income for allowing someone else to do this with your money.
What is interest.
This is a disadvantage of leasing a car.
What are mileage restrictions?