Competent Yes or NoVersion en ligne Familiarize yourself with Competent-level financial literacy terminology! Can you complete the entire set? par WM 1 GDP is a country's total amount of money spent in a year Yes No 2 An entrepreneur is someone who helps plan and manage your money Yes No 3 Your net worth is the value of your assets minus the value of your liabilities Yes No 4 When your interest earns interest, it's called compound interest Yes No 5 When taxes on income or investments are delayed until a later time, it's called tax-deferred Yes No 6 Bankruptcy is when you replace a loan with a new one to get better terms Yes No 7 The ROI is the percentage showing how much money you made compared to what you invested Yes No 8 Refinancing is a legal process for people or businesses who cannot pay their debts Yes No 9 Your portfolio is all the liabilities you own Yes No 10 An asset is something you own that can make you money Yes No 11 Real estate consists of land, houses, apartments, and commercial buildings Yes No 12 A tax bracket measures your net worth and categorizes you based on individuals with similar net worths Yes No 13 Credit Limit is the minimum amount of money you must pay on a loan Yes No 14 When there is more of something than needed it's called a surplus Yes No 15 The Federal Reserve is the first bank ever built Yes No 16 Liquidity is how fast you can turn something into cash without losing value Yes No 17 A liability is something you don't own but can still generate income for you Yes No 18 A long-term plan for managing money and achieving goals is called a financial plan Yes No 19 Your credit score shows a summary of your borrowing and payment history Yes No 20 Simple interest is interest earned only on the principal Yes No 21 Diversification is a way to increase risks for higher rewards Yes No 22 A 401k is retirement plan offered by many employers Yes No 23 When you invest, you risk the chance of losing money Yes No 24 Asset Allocation is dividing your money among different types of investments to balance risk and reward Yes No 25 Capital is the money used to invest or start a business Yes No 26 Utilization rate is the maximum amount of money you can borrow on a credit card Yes No 27 Scarcity is when there is not enough resources to meet peopl'es wants and needs Yes No 28 The stock market is an exchange where investors buy and sell shares of public companies Yes No 29 The APR is the cost of borrowing money, including interest and fees Yes No 30 Volatility is how much and how quickly the value of an investment goes up or down Yes No 31 A recession is when the prices of goods and services go up over time, making money worth less Yes No 32 Your risk tolerance measures how much return you can make on an investment Yes No 33 Principal is the money used to start a business Yes No
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