Week One:

1. The Rule of 72 is:
a. A tool to determine the number of years until retirement for an employee
b. Used to estimate how long it takes for prices to double using a given annual inflation rate
c. The legal code for requiring companies to provide a match on retirement savings
d. Used to calculate interest rates for savings

2. Which is NOT an identifiable financial goal?
a. Retirement and estate planning
b. Risk management
c. Living on a fixed income
d. Saving

3. Fran has a goal of “saving $25 per month for a TV.” Fran’s goal lacks
a. Measurable terms
b. A realistic perspective
c. A specific objective
d. A time frame

4. Opportunity cost can be defined as
a. A trade-off of a decision
b. Failing at goals
c. Creating financial wisdom
d. The amount paid for taxes when a purchase is made

5. To calculate the time value of money, we need to consider all of the following except the
a. Amount of the savings
b. Annual interest rate
c. Length of time the money is invested
d. Type of investment

6. Which of the following is NOT a component of money management?
a. Storing personal financial records to document transactions and legal matters
b. Creating personal financial statements to measure and assess financial position and progress
c. Creating a budget
d. All of these are components of money management.

7. A family with $50,000 in assets and $30,000 of liabilities would have a net worth of
a. $10,000
b. $20,000
c. $50,000
d. $80,000

8. Discretionary income equals
a. Gross income
b. Money left over after paying for housing, food, and other necessities
c. Take-home pay
d. Money saved after paying for household necessities

9. What is the maximum dollar amount the Federal Deposit Insurance Corp. ensures per deposit per insured financial institution?
a. $150,000
b. $200,000
c. $250,000
d. $500,000

10. Which is NOT one of the four types of savings plans?
a. Certificate of Deposit
b. U.S. Savings Bonds
c. Checking accounts
d. Money Market Accounts/Funds