Financial Literacy Final Exam
Study online at
https://quizlet.com/_qm3kk
1. interest rate percentage paid to a lender for the use of borrowed
money
2. emergency fund 6 - 9 months of expenses in readily available
cash to be used only in the event of an
emergency; Baby Step 3
3. pre-authorized PAC; system of automatic payment processing
checking by which bills, deposits, and payments are
handled electronically and at regular intervals or
on a pre-determined schedule
4. sinking fund saving money for a specific purpose to allow
interest to work for you rather than against you
5. compound interest paid on interest previously earned;
inter- est credited daily, monthly, quarterly, semi-annually,
or annually on both prin- cipal and previously
credited interest
6. saving the process of setting aside money until a future
date
instead of spending it today. The goal is to provide
for emergencies, short term goals, and
investments.
7. want desire for economic goods or services not
necessary in order to survive
8. need economic goods and services that are basic for
living such as food, clothing, shelter
9. deposit putting money into the account
10. withdrawal taking money out of the account
11. rule of 72 a quick way to calculate a sum of money; how
long it will take to double your money
12. simple interest interest credited daily, monthly, quarterly, semi-
1/
10
, Financial Literacy Final Exam
Study online at
https://quizlet.com/_qm3kk
annually, or annually on principal only, not
previously credited inter- est
13. salary payment for work, usually calculated in periods of
a week or longer; usually tied to the completion
of specific duties over a minimum, but not
maximum, number of hours
2/
10
Study online at
https://quizlet.com/_qm3kk
1. interest rate percentage paid to a lender for the use of borrowed
money
2. emergency fund 6 - 9 months of expenses in readily available
cash to be used only in the event of an
emergency; Baby Step 3
3. pre-authorized PAC; system of automatic payment processing
checking by which bills, deposits, and payments are
handled electronically and at regular intervals or
on a pre-determined schedule
4. sinking fund saving money for a specific purpose to allow
interest to work for you rather than against you
5. compound interest paid on interest previously earned;
inter- est credited daily, monthly, quarterly, semi-annually,
or annually on both prin- cipal and previously
credited interest
6. saving the process of setting aside money until a future
date
instead of spending it today. The goal is to provide
for emergencies, short term goals, and
investments.
7. want desire for economic goods or services not
necessary in order to survive
8. need economic goods and services that are basic for
living such as food, clothing, shelter
9. deposit putting money into the account
10. withdrawal taking money out of the account
11. rule of 72 a quick way to calculate a sum of money; how
long it will take to double your money
12. simple interest interest credited daily, monthly, quarterly, semi-
1/
10
, Financial Literacy Final Exam
Study online at
https://quizlet.com/_qm3kk
annually, or annually on principal only, not
previously credited inter- est
13. salary payment for work, usually calculated in periods of
a week or longer; usually tied to the completion
of specific duties over a minimum, but not
maximum, number of hours
2/
10
