Unit Test — Unit test Answers

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What best determines whether a borrower’s interest rate on an adjustable rate loan goes up or down?

a fixed interest rate

a bank's finances

a market's condition

a person's finances

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When creating a budget, log fixed expenses

before income.

after income.

after savings.

at the top.

Tina has $1,000 per year she can invest to save money for her future.Which option would allow the highest growth for Tina's investment?

Tina can start investing the whole amount this year at 5% interest.

Tina can start investing the whole amount this year at 7% interest.

Tina can start investing half of the amount two years from now at 5% interest.

Tina can start investing half of the amount two years from now at 7% interest.

When a person invests income, he or she

spends no money in the short term and saves it all for the long term.

uses money in a way that will increase its value in the future.

spends income only on essential needs such as housing.

cuts out all discretionary spending for a set period to save money.

Which characteristic is most important in determining an investment’s level of risk?

popularity

predictability

price

prominence

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