Mr. Simpson deposits his money in a savings account at the Springfield Bank. Would he earn more money with simple interest or with compound interest? Compound interest earns more because the amount on which interest is paid increases over time.
Which effect of high inflation might make it difficult for students to get funding for college? High interest rates
Tina’s mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? positive incentive
What is the MOST LIKELY reason for an increase in the price of a specific stock? increased demand for the products produced by that company
Based on the graph, which of these statements is TRUE? Money in stocks have both high risk and high potential return.
According to the graph, workers with some college have a higher annual income than workers with a high school diploma.
Investment in education, training, and skill development has been linked to increasing earnings for workers.
When should you look for a bank or credit union that offers the LOWEST interest rates? When borrowing capital to start a business
Coupons, “buy-one, get-one free” deals, sales, and discounts are positive incentives encouraging people to spend money.
Homer wants to borrow money from the Springfield Bank to buy a new trampoline. The bank requires collateral for a loan. What is collateral? something of value which the bank will receive if the loan is not repaid
Most credit card offers use compounding interest. This is usually called the annual percentage rate, or APR. When the interest is compounded frequently, the balance grows faster.
speeding ticketlittering finelibrary finedetention All of these are examples of negative incentives.
Banks and other financial institutions use savings deposits to help borrowers by using deposits to make loans.
Why is there a difference between interest charged and interest earned? Banks are profit-making institutions.
Tax rates in which the percentage of tax is the same regardless of the level of income is MOST LIKELY a proportional tax.
What is a major advantage of using credit unions? They offer lower interest rates for borrowers.
private purchasethrough employerCOBRAvarious exchanges What best describes the items in this list? methods for obtaining health insurance
Jose is applying for an automobile loan. The lender considers Jose creditworthy MOST LIKELY because Jose has made on-time payments to other loans.
How might fiscally responsible individuals use investments to meet financial goals? Individuals delay the satisfaction from purchases now for possible greater returns later.
Which statement is FALSE? Insurance only increases your risk exposure.

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