Banking & Investing - A Wise Financial Literacy Review

Question 1

The MOST LIQUID type of investment

Accepted Answer

Savings Account

Question 2

An opt in service that allows you to cover withdrawals if you have insufficient funds

Accepted Answer

Overdraft Protection

Question 3

Lack of money in an account to pay a payment

Accepted Answer

Non-sufficient Funds

Question 4

Type of investment where one lends money to a corp. or govt. for a set period of time & rate

Accepted Answer

Bond

Question 5

The term 'bull market' indicates that ...

Accepted Answer

Stock prices are likely to go up

Question 6

Owing more than you own

Accepted Answer

Insolvency

Question 7

$ given to bank for a set time at a set interest rate

Accepted Answer

Both A and C

Question 8

An item of value that is pledged as payment of an unpaid debt is called __

Accepted Answer

Collateral

Question 9

A check that has been written but not yet received and paid by the bank

Accepted Answer

Outstanding Check

Question 10

A tool that can be used for managing money and achieving financial goals is called a ___

Accepted Answer

budget

Question 11

To add up or grow in value

Accepted Answer

Accrue

Question 12

An index that is an indicator of how well the largest companies in the world are doing

Accepted Answer

Dow Jones

Question 13

Which of the following is NOT one of the three leading credit reporting agencies?

Accepted Answer

Experience

Question 14

Advantages of being a member of a credit union include __

Accepted Answer

Low interest loans

Question 15

Divide this by the interest rate to determine how you can double your money in an investment

Accepted Answer

72

Question 16

Distribution of the after-tax earnings of a corp. given to a company's shareholders are ___

Accepted Answer

dividends

Question 17

A fee that someone pays to be able to borrow money

Accepted Answer

Interest

Question 18

The world's first electronic stock market

Accepted Answer

NASDAQ

Question 19

Something you own that increases in value over time

Accepted Answer

Appreciating Assets

Question 20

Spreading investment dollars among different sectors to reduce the level of risk

Accepted Answer

diversifying

Question 21

An account that is used to trade stocks on the stock exchange

Accepted Answer

Brokerage Accounts

Question 22

Financial institutions that handle money and operate for a profit

Accepted Answer

Banks

Question 23

The time value of money refers to __

Accepted Answer

The fact that you can use money to make money over time

Question 24

Taxed deferred means

Accepted Answer

Taxed at a later date

Question 25

A written guarantee by a manufacturer that a product will do what it was made to do

Accepted Answer

Warranty

Question 26

When inflation occurs, the fed may attempt to reign it in by __

Accepted Answer

Raising interest rates

Question 27

Comparing one's check registry and bank statement to get them to match is called

Accepted Answer

Reconciling

Question 28

Common stockholders

Accepted Answer

All of the above

Question 29

A small secure storage compartment that can be rented at a bank is called a __

Accepted Answer

Safe Deposit Box

Question 30

Roth IRA's are ___

Accepted Answer

Both A and B

Banking & Investing - A Wise Financial Literacy Review

Questions 30

Banking & Investing - A Wise Financial Literacy Review

Questions 30