a. 4% b. .08 c. 5.5% d. $68 463. Principal that is very liquid is most likely: a. Earning a very high interest b. Earning a modest amount of interest c. Earning no interest d. Earning only simple interest 464. Cashing out a CD before its term ends: a. Is forbidden b. Will result in hefty fees c. Will strip the account of all its value d. Is okay if interest rates go up suddenly 465. A budget is considered balanced when: a. Your expenses do not exceed your income b. All of your money is accounted for c. You pay your bills on time d. You live beyond your means 466. Discretionary spending refers to money spent on: a. Both needs and wants b. Wants c. Fixed expenses d. Variable expenses 467. A weekly allowance and a monthly paycheck are both examples of: a. Interest b. Expenses c. Income d. Needs 468. Which of the following would NOT be considered an asset? a. A 5-year CD b. A gold watch c. A platinum credit card d. Land you inherited from a grandparent 469. Fixed expenses: a. Are easier to plan for than variable expenses b. Might include rent or a cable TV bill c. Cost the same amount every month d. All of the above 470. A person's net worth is: a. The total of their assets minus their liabilities b. The principal amount in all their savings accounts c. A major factor in credit scoring
a. 4% b. .08 c. 5.5% d. $68 463. Principal that is very liquid is most likely: a. Earning a very high interest b. Earning a modest amount of interest c. Earning no interest d. Earning only simple interest 464. Cashing out a CD before its term ends: a. Is forbidden b. Will result in hefty fees c. Will strip the account of all its value d. Is okay if interest rates go up suddenly 465. A budget is considered balanced when: a. Your expenses do not exceed your income b. All of your money is accounted for c. You pay your bills on time d. You live beyond your means 466. Discretionary spending refers to money spent on: a. Both needs and wants b. Wants c. Fixed expenses d. Variable expenses 467. A weekly allowance and a monthly paycheck are both examples of: a. Interest b. Expenses c. Income d. Needs 468. Which of the following would NOT be considered an asset? a. A 5-year CD b. A gold watch c. A platinum credit card d. Land you inherited from a grandparent 469. Fixed expenses: a. Are easier to plan for than variable expenses b. Might include rent or a cable TV bill c. Cost the same amount every month d. All of the above 470. A person's net worth is: a. The total of their assets minus their liabilities b. The principal amount in all their savings accounts c. A major factor in credit scoring
971%20Question%20Financial%20Literacy%20Test%20Bank.docx