W!SE Financial literacy flashcards Questions And Correct Answers A Graded

What is liquidity? a. Refers to the state of water b. Money invested as a down payment c. How quickly you can convert an asset to cash - answer--c. How quickly you can convert an asset to cash aWhich of the following institutions give loans? Pawn Shop Credit Union Payday Lender Bank - answer--All aTrue or False: If you want to have the most money possible for retirement, it is better to start saving when you're about fifteen years away from retirement, rather than when you're younger. - answer--False aWhat is compound interest? a. When you earn interest on your money and keep it in the bank instead of withdrawing your money b. Interest that is earned on an account and then withdrawn by the account owner. c. Interest that is earned on the principal only d. Interest that is earned on the principal plus interest already earned - answer--d. Interest that is earned on the principal plus interest already earned aIf you only make the minimum payment on your credit card each month,________. a. You are not charged interest b. You will pay off the amount you owe quickly c. You will end up paying a lot of money in interest and it will take a long time to pay off your balance - answer--c. You will end up paying a lot of money in interest and it will take a long time to pay off your balance aWho regulates the stock market? - answer--Securities and Exchange Commission (SEC)