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LET’S PRACTICE
Name: _____________________________________________________________________________
Are You Financially Literate? Chapter 8 Quiz
1. Which of the following is the most liquid asset? a. Certificate of deposit
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c. a house with a fully repaid mortgage
b. savings account d. a retirement account Explain your answer. Tell why the assets you did not select are not as liquid:
_ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 2. Jennifer is building an emergency savings account. She is estimating her account balance needs based on her living expenses. She has included costs for housing, utilities, and food. What cost categories has she forgotten? Identify three. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 3. A long-term financial goal is a goal that: a. involves saving more than $5000 b. can only be completed after receiving a college education c. takes more than five years to accomplish d. a and c 4. _____________ is paid out as it is earned and does not become part of the principal balance. a. Total accrued amount c. Compound interest b. Round-up saving d. Simple Interest 5. List 3 typical long term financial goals: _ ____________________________________________________________________ _ ____________________________________________________________________ 6. Which of the following is NOT a good saving habit? a. automated savings plans b. using a round-up savings program c. saving raises in wages d. making a risky investment before having an emergency savings fund PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 147
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