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Budgeting Decisions
Saving & Interest
Credit Smarts
Investing Tools
Risk & Strategy
100
This plan assigns income to spending, saving, and financial goals.
What is a budget?
100
Money set aside for unexpected costs, such as a repair or medical bill, is called this.
What is an emergency fund?
100
This is money borrowed under an agreement to repay it, usually with interest.
What is a loan?
100
This investment represents a share of ownership in a company.
What is a stock?
100
Spreading money across different investments to reduce the impact of any single loss is called this.
What is diversification?
200
Housing, basic food, and essential transportation belong in this budget category.
What are needs?
200
This is money a bank pays you for keeping savings on deposit.
What is interest?
200
Lenders use this number to estimate how likely a borrower is to repay debt.
What is a credit score?
200
Buying this investment means lending money to a government or company.
What is a bond?
200
This principle says that seeking a higher possible return usually means accepting more risk.
What is the risk-return tradeoff?
300
When income is greater than expenses, the amount left over is called this.
What is a surplus?
300
This type of interest is earned on both the original deposit and previously earned interest.
What is compound interest?
300
This percentage measures the yearly cost of borrowing, including interest and certain fees.
What is annual percentage rate (APR)?
300
This is a payment a company may make to shareholders from its profits.
What is a dividend?
300
The number of years before you expect to need invested money is called this.
What is a time horizon?
400
The next-best choice you give up when you spend money on something is called this.
What is opportunity cost?
400
This percentage shows a savings account's yearly return after compounding is included.
What is annual percentage yield (APY)?
400
A credit card balance divided by its credit limit produces this percentage.
What is credit utilization?
400
This fund holds a basket of investments and trades on an exchange like a stock.
What is an exchange-traded fund (ETF)?
400
The way a portfolio is divided among stocks, bonds, cash, and other investment types is called this.
What is asset allocation?
500
In this budgeting method, every dollar of income is assigned a job so income minus planned spending and saving equals zero.
What is a zero-based budget?
500
Using the Rule of 72, this is approximately how long money earning 8% per year takes to double.
What is 9 years?
500
A card has a $1,000 limit and a $250 balance. This is its credit utilization.
What is 25%?
500
This type of fund aims to match a market index, such as the S&P 500, instead of selecting individual winners.
What is an index fund?
500
Investing the same amount on a regular schedule, regardless of market price, is called this.
What is dollar-cost averaging?