chapter 3 Flashcards
(14 cards)
The________ refers to the earning potential of money.
time value of money
_______ deals—such as 90-days-same-as-cash—are often used to get you to buy higher-priced items.
Interest rates
You save for a(n) _______ when you don‘t have the cash to buy it now.
large purchase
The initial amount of money you deposit or invest is called the
Principles
The price of goods and services increases over time due to _______
Inflation
________is the average rate of growth for an investment over a period of time.
compound growth
An investment’s _________ is its percentage of gain or loss over time.
rate of return
45% of Americans have less than $1,000 saved for a(n) _________
emergency fund
Which of the following would be considered an emergency fund expense?
A: lost cell phone
B: Video Game Sale
C: Blown Car Tire
D:Shoe Sale
C: Blown Car Tire
”Rate of return“ is a phrase used to describe what aspect of investing?
A:Compound Growth
B:Accrued interest
C:Risk And Return Ratio
D:Inflation
C: Risk and Return Ration
In The Five Foundations, what is The Third Foundation?
A:Pay Cash For College
B:save $500 in emergency fund
C:Pay Cash for your car
D:Get out and stay out of debt
C: Pay cash for your car
When you make a purchase but later wish you hadn‘t done so, you experience:
A:Selfishness
B:Buyers remorse
C:Impulsiveness
D:Time Value
B: Buyers Remorse
Which of the following questions helps you determine if something is actually an emergency expense?
A:Is it urgent
B:is it unexpected
C:is it necessary
D:All of the above
D: All the above
What two elements do you need to build wealth through compound growth?
A: a inheritance and a lawyer
B:money invest and time
C:money invest and good stock
D:time and wealthy relative
B: money invest and time
