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5. Which of the following is the key to becoming fi nancially secure for the
average person?
A. Making a large salary.
B. Inheriting money.
C. Working multiple jobs.
D. Starting to save or invest at an early age.
6. Net worth is the difference between
A. assets and interest.
B. liabilities and growth.
C. assets and liabilities.
D. growth and investments.
7. Putting money to a use that you hope will increase its value over time is
called
A. net worth.
B. investing.
C. average rate of return.
D. compound interest.
8. The increase in value of your investments over a period of time is called
A. assets.
B. liabilities.
C. fi nancial planning.
D. growth.
9. The percentage that your savings or other investments earn over a period
of time is called
A. average rate of return.
B. interest.
C. compounding.
D. growth.
10. The amount you place in an investment is called the
A. interest.
B. principal.
C. rate.
D. time.
Build
Your Vocabulary
For each word or term, write the correct defi nition using your own words.
11. Financial pl an