1. Unit 2 Review Game: Personal Finance

2. Review game rules:
The first team to raise the correct answer in the air on their dry erase board earns the point.
You can wager your points by taking a shot. If you miss, you lose the points that you wagered. If you make the shot, you gain the points that you wagered.
First place= +6 Second place= +5 Third place= +4

3. Ready… Set… GO!!!

4. When a borrower must repay a loan based on compound interest rather than simple interest, they should expect pay the lender _________ total interest than they would under simple interest

5. More

6. The higher the income, the higher the tax rate= ___________ tax

7. Progressive

8. __________ tax is considered a regressive tax because it impacts low income earners more than high income earners.

9. sales

10. Using the _______ model will help you decide on a major decision to see if the marginal benefits outweigh the marginal costs.

11. PACED

12. When you buy a car and go to register it, you need to show proof of ___________.

13. insurance

14. When you evaluate risk and return, you are evaluating ___________ plans.

15. investment

16. If everyone in a country pays the same tax rate, then they are paying a proportional tax, also known as the _______ tax rate.

17. flat

18. Your credit _________ is based on your credit worthiness- how much banks trust you to repay a loan.

19. score

20. If you want to save money but don’t need access to the cash right away, a good investment option would be to put money in a ____.

21. CD, certificate of deposit

22. A lower deductible means the insurance company must pay more in an accident, so they make you pay for the risk with a higher ________.

23. premium

24. Typically the more education you have, your income ________.

25. increases

26. __________ insurance will give you a portion of your pay check if you are out of work due to injury or serious illness.

27. Disability

28. What order would you place the following investments from least risky to most risky?
Bonds
Stocks
Savings Account
Mutual Funds

29. C, A, D, B

30. When you __________ your investment assets, you are investing money in different things instead of putting all of your money into just one type of investment.

31. Diversify

32. Which type of financial institution is most likely to require a membership and offer lower rates and special perks to their membership? A. Savings and loan banks B. Large national banks C. Bank holding companies D. Credit union

33. D. Credit Union

34. To maximize profits, a bank would charge a __________ rate of interest on loans and pay a _________ rate of interest on deposits

35. Higher/lower

36. On which of the following loans would one be most likely to pay the highest interest rate? A home mortgage loan B. An automobile loan C. A credit card D. A student loan for college

37. C. Credit Card

38. Most insurance policies include a stipulated amount of money that they insured must pay when a claim is filed with the insurance company. What is the name for this insurance term?
Shared liability
B. Deductible
C. Asset protection
D. Premium

39. B. Deductible

40. If interest rates are ________, you will keep money in your savings or CD.

41. high

42. If you keep a savings account with a bank, you will get a ________ rate on a loan than what you would get on your savings account.

43. higher

44. When you are concerned about getting hurt at work or prematurely dying, then you should consider buying ________________ and _________________.

45. Disability and Life insurance

46. _____________ is when you receive goods in the present on agreement that one will pay for them in the future

47. Credit

48. Loans with people that have ____________ carry less risk because the borrower has assets that can be taken in place of payment

49. Collateral

50. Banks take in deposits, for which they pay a relatively ______ rate of interest; they then hold a small amount aside and loan out the rest at a _________ rate of interest.

51. Low; higher

52. ___________________ is an important reason why people need financial investment plans

53. Retirement

54. _____________ is money paid by a borrower to a lender in exchange for the use of money

55. interest

56. Buying stock through ________ ________is less risky than buying individual company stock because you diversify your risk by buying small pieces of many companies at a time

57. Mutual funds

58. Dana has a fixed rate of 3. 5% on her 30-year mortgage
Dana has a fixed rate of 3.5% on her 30-year mortgage. She ______ because she is repaying the loan with money that has less purchasing power than the money she borrowed

59. Gains, or benefits

60. If the interest rate on a 10-year treasury bonds is 2
If the interest rate on a 10-year treasury bonds is 2.3%, but the rate of inflation is 3.5%, then the bond investment is risky because the rate of inflation is ____________ than the return

61. higher

62. lower income people tend to spend a ________ proportion of their income on sales taxed items than higher income people.

63. higher

64. A _________ interest rate on a loan will not rise or fall during the term of the loan.

65. Fixed

66. Which investment carries the GREATEST risk but has the potential for the GREATEST return?

67. Stocks

68. Which of the factors contribute MOST to your credit score

69. Payment history

70. _________ interest applies only to the original amount borrowed called the __________. __________ interest applies to both the principal of the loan as well as accrued interest on the principal.

71. Simple; Principal; Compound

72. You would rather earn __________ interest on your savings.

73. Compound

74. Usually the highest APR you will pay is on a _____ _____ loan.

75. Credit Card

76. You would rather pay _________ interest on a loan.

77. Simple

78. Looping Questions
3 points per question

79. ___________= additional, or one extra

80. marginal

81. ___________= distribution

82. allocate

83. Redistribution of income= government taking _______ revenue and spreading it out to pay for public goods/services.

84. tax

85. Resolving market failures might include taxing companies that ___________, or breaking up monopolies

86. pollute

87. Minimal government regulations Property rights are strong Profit motive to start businesses This describes a _________ economy.

88. Market

89. People, businesses, and governments respond to incentives in ______________ ways. Examples of ___________ behavior: If taxes go down, spending will go up. If the corporate taxes go down, salaries for employees might go up.

90. predictable

91. An example of a positive __________ is when your boss tells you that if you work extra hours on the weekend, you will get a bonus.

92. incentive

93. A market, or mixed-market, economy has ________ _______- the freedom to buy and sell goods without government coercion.

94. Voluntary exchange

95. The cost of the next best alternative when one choice is made over the other is known as the _______ ________.

96. Opportunity Cost

97. The factors of production include capital, entrepreneurship, land, and _____________.

98. labor

99. A ____________ economy has far more government regulations and is more concerned with equitable allocation of resources.

100. Command

101. Government taking away rules= _____________

102. deregulation

103. When economists talk about scarcity, they are describing a condition in which human ________ exceed the resources to get what we desire.

104. wants

105. BONUS QUESTION +20 points for the game
Draw a PPC graph
Label inefficient production with an X
Label desirable, but unattainable production with a Y