U5-Saving Investing-L1-Choose to Save

Question 1

earning interest on interest

Answer 1

compound interest

Question 2

purchase of goods and services

Answer 2

consumption

Question 3

complete a task yourself rather than paying someone else to do it

Answer 3

do it yourself

Question 4

cash set aside to cover the cost of unexpected events

Answer 4

emergency savings

Question 5

price paid for using someone else’s money

Answer 5

interest

Question 6

percentage rate used to calculate interest

Answer 6

interest rate

Question 7

how quickly and easily assets can be converted to cash

Answer 7

liquidity

Question 8

something of owned of value

Answer 8

asset

Question 9

saving for future by putting money aside before paying regular expenses/spending money

Answer 9

pay yourself first

Question 10

original amount of money saved or invested

Answer 10

principal

Question 11

accumulation of excess funds by intentionally spending less than you earn

Answer 11

saving

Question 12

portion of income not spent on consumption

Answer 12

savings

Question 13

money available today is worth more than the same amount if received in the future

Answer 13

time value of money