NAF Exam Study Guide With 69 Questions and answers Newest RATED A+ 2025/26

NAF Exam Study Guide With 69 Questions
and answers Newest RATED A+ 2025/26
Financial Literacy - Correct Answers Being Financial Literate is when your able to manage your money well,
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plan for the future and make reasonable decisions.
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II Needs - Correct Answers Things you can't live without
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II Wants - Correct Answers Things you would like to have
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Time value of Money - Correct Answers It refers to the idea that a dollar in hand today is worth more than a
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dollar in the future. In other words, money avaliable now is worth more than the same amount in the future.
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II Interest - Correct Answers It is a payment made in exchange for using money over time.
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Interest part 2 - Correct Answers If you borrow money from the bank, you pay the bank interest. If you lend
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the bank money, it pays you interest.
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II Future Value - Correct Answers It refers to the value an investment at some point in the future.
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Simple interest - Correct Answers Simple interest refer to the interest that you earn on your money. Simple
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interest is paid when the interest is not reinvested each interest period. (linear)
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Compound interest - Correct Answers Refers to the interest that you earn on your money. The processor
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compounding refers to earning interest on your interest. (exponential)
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Financial Service - Correct Answers The financial services industry helps people, businesses, and
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governments manage their money. They are heavily regulated by the government and they keep money
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flowing through the economy.
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, Financial service institutions may - Correct Answers Hold an protect people's money, lend money people,
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help people make more money, protect people from being financially hurt by unfortunate event.
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Examples of financial service institutions are, - Correct Answers Banks, credit unions, saving and loans
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associations, insurance companies
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II Savings account - Correct Answers It is a place to keep your money.
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II Checking account - Correct Answers Allows you to write checks against the money in the account.
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Insurance - Correct Answers It is a form of risk manage; it protects your finance depending on what of
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insurance it is (health, car, etc.)
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Financial Intermediary - Correct Answers Is an institution or even an individual who acts as the middleman
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between those who want to lend money and those who want to borrow it; (etc: commercial banks).
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Thrifts - Correct Answers Are typically savings institutions and include savings and loan associations and
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saving banks. Specialize in savings accounts and real estate financing
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Credit Unions - Correct Answers Financial institutions formed by an organized group of people with a
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common bond, such as the one that exist between teachers, government or industry employees
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II Insurance companies - Correct Answers Designed to protect individuals and businesses from risks
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Mutual Fund - Correct Answers A professionally managed investment company that pools money from
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investors and invests the money into stocks, bonds, or other securities
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Pension Funds - Correct Answers Workplace plans designed to provide income for employees when they
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retire.
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II Capital - Correct Answers A business's cash or property
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