If you’re building an investment portfolio, it is important to

Select a diverse range of investments that meet your goals

Having a good credit score is important because it:

Lowers the interest rate you’ll have to pay on loans

To save money for six to 12 months and earn interest with limited risks, put your money in:

FDIC-insured certificate of deposit

Online banking is an effective tool for all of the following, except:

Getting advise & managing a trust fund

Buying and leasing a new car:

Finance a car either a with down-payment or buy-out at end

A will is important if:

You want to control the transfer of your wealth

The following organization insures stocks that you purchase against loss in the stock market

No organization insures stocks against market losse

You want to take control of your spending by creating a budget. The first step is:

Gather data by calculating monthly income and spending

To be fully covered under homeowners or renters insurance for personal property, we must:

Make an inventory of what we have and what it is worth

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Financial Literacy: Check-Up

15 termsStudBud Administration112 plays

Let's apply what we have learned in Business & Personal Finance this session. #financialLiteracy #financialPlanning #investing #saving

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Questions 15

Answers

1
If you’re building an investment portfolio, it is important to
Trade your stocks at least quarterly
Select a diverse range of investments that meet your goals
Invest primarily in one or two large company stocks
Start by investing only in bonds, as they are more stable
2
What type of bank account pays us higher interest rates on our deposits and limits withdrawals?
Checking
Passbook savings
Certificate of Deposit (CD)
Combined savings & checking
3
What insurance provides addition coverage to auto insurance if you cause an auto accident?
Long-term-care insurance
Homeowners insurance
Disability insurance
Umbrella liability insurance
4
Having a good credit score is important because it:
Allows you to lend money through your online bank
Lets you get life insurance at a 50% discount
Lowers the interest rate you’ll have to pay on loans
Enables you to borrow more than you can really afford
5
To save money for six to 12 months and earn interest with limited risks, put your money in:
Line of credit
Mutual fund
FDIC-insured certificate of deposit
Hedge fund
6
Online banking is an effective tool for all of the following, except:
Paying bills automatically
Getting advise & managing a trust fund
Transferring funds
Viewing your balances in real time
7
Buying and leasing a new car:
Are 2 completely different ways to finance
Each requires a downpayment and then a buy-out
Are not responsible ways to purchase a car
Finance a car either a with down-payment or buy-out at end
8
A will is important if:
You have a large retirement plan
All of the above
You want to avoid probate at your death
You want to control the transfer of your wealth
9
It’s important to have a budget because it:
All of the above
Helps you achieve short-term and long-term financial goals
Helps you set targets for savings
Helps you evaluate your spending habits
10
The following organization insures stocks that you purchase against loss in the stock market
No organization insures stocks against market losse
Federal Deposit Insurance Corporation
The U.S. Department of the Treasury
The Securities and Exchange Commission
11
Diversifying your assets can help protect you against:
Stock market volatility
Inflation
All of the above
Political risk
12
You want to take control of your spending by creating a budget. The first step is:
Cut up all your debit and credit cards
Gather data by calculating monthly income and spending
Sell possessions and cancel memberships to free up cash
Use all your savings to pay off your debt immediately
13
When you are planning to start a family, it is wise to have:
All of the above
Disability insurance
Life insurance
A will
14
To be fully covered under homeowners or renters insurance for personal property, we must:
Show everything to our insurance agent
We collect the stated value for property on our policy
Keep receipts for everything we purchase
Make an inventory of what we have and what it is worth
15
When determining your financial net worth, which of these should be considered an asset?
Your parents’ condo, where you live
All of the above
Investment accounts
Payments on a car you may lease

Financial Literacy: Check-Up Flashcards | StudBud