WISE Financial Literacy Quiz (Investing, Financial Planning & Regulatory Agencies)

Question 1

Recucing risk by investing in a variety of assets.

Accepted Answer

Diversification

Question 2

Market condition where stock prices are falling, causing self-sustaining pessimisim.

Accepted Answer

bear market

Question 3

A profit that results from a disposition of a capital asset at a value over the purchase price.

Accepted Answer

Capital Gain

Question 4

The first step in budgeting your money.

Accepted Answer

Pay yourself first

Question 5

Individuals invest in this retirement plan, tax is paid when invested and withdrawn tax free.

Accepted Answer

Roth IRA

Question 6

Collection of investments held by an investment company, financial institution or individual.

Accepted Answer

Investment Portfolio

Question 7

Which is NOT a true statement about the Consumer Financial Protection Bureau (CFPB)?

Accepted Answer

Regulates financial institutions

Question 8

Shareholders may choose to vote their shares by allowing someone to cast votes on their behalf

Accepted Answer

Proxy

Question 9

Individuals invest in this retirement plan pretax, tax is paid when withdrawn during retirement

Accepted Answer

Traditional IRA

Question 10

_________ refers to a time when a bond will end and the principal is repaid with interest.

Accepted Answer

Maturity

Question 11

One of the biggest features of a municipal bond is that it is ___________.

Accepted Answer

Tax Free

Question 12

The market that companies sell stocks to investors. The company gets the proceeds from the sale

Accepted Answer

Primary Market

Question 13

Which of the following is the most liquid investment?

Accepted Answer

Highly Traded Stock

Question 14

A market of a group of securities in which prices are rising or are expected to rise.

Accepted Answer

Bull Market

Question 15

During the 20th century the stock market returned an average of ________ a year.

Accepted Answer

10%

Question 16

Which of the following is NOT a role of the Securities Exchange Commission (SEC).

Accepted Answer

buy and sell securities

Question 17

Distribution of a company's earnings, decided by the board of directors, to its shareholders.

Accepted Answer

Dividends

Question 18

________ are operated by money managers, who invest in a variety of securities for investors.

Accepted Answer

Mutual Funds

Question 19

Which is more risky renting or owning?

Accepted Answer

Owning

Question 20

Which of the following is NOT an advantage of owning securities rather than savings account.

Accepted Answer

Guaranteed Rate of Return

Question 21

Why do businesses and government sell bonds?

Accepted Answer

To raise money

Question 22

A short-term debt obligation backed by the government with a maturity of less than one year.

Accepted Answer

Treasury Bills

Question 23

Assets minus Liabilities equals ______________________.

Accepted Answer

Net Worth

Question 24

Which of the following is NOT a role of the FDIC?

Accepted Answer

Insure stocks, bonds, mutual funds investments up to $250000

Question 25

A retirement plan established by your employer, the employer may match contributions.

Accepted Answer

401k

Question 26

The U.S. has a graduated income tax system, it is called ______________.

Accepted Answer

Progressive Tax

WISE Financial Literacy Quiz (Investing, Financial Planning & Regulatory Agencies)

Questions 26

WISE Financial Literacy Quiz (Investing, Financial Planning & Regulatory Agencies)

Questions 26