Financial Literacy Part 1

Question 1

Which earns you more money over time?

Accepted Answer

Compound interest

Question 2

Municipal bonds are exempt from federal taxes and state taxes.

Accepted Answer

True

Question 3

What is the unauthorized use of a credit card?

Accepted Answer

using a stolen credit card at a store

Question 4

The Federal Reserve System:

Accepted Answer

was created by Congress to provide a safer monetary sytem

Question 5

The ______ tells you how many years it will take an investment to double.

Accepted Answer

Rule of 72

Question 6

What is a tax exemption?

Accepted Answer

Something that ppl get when they have dependants

Question 7

What is a cashier's check?

Accepted Answer

A check guaranteed by the bank that writes the check

Question 8

The largest secondary market for stocks/securities in the U.S, is the_________.

Accepted Answer

NYSE

Question 9

Which is cheaper, term or whole life insurance?

Accepted Answer

Term

Question 10

What type of investment has the highest risk?

Accepted Answer

Stocks

Question 11

When you buy a ______________, you are loaning money to an organization.

Accepted Answer

Bond

Question 12

Which type of insurance requires you to have a Primary Care Physician?

Accepted Answer

HMO

Question 13

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Accepted Answer

Bankruptcy

Question 14

You should reconcile your checking account

Accepted Answer

when you get your monthly bank statement

Question 15

It's best to start saving for retirement when you're about 15 years away from retirement.

Accepted Answer

False

Question 16

Compounding of interest allows a principal amount to grow at a ____ rate than simple interest.

Accepted Answer

faster

Question 17

What type of investment has the lowest risk?

Accepted Answer

Savings Account

Question 18

Municipal bonds are exempt from federal taxes and state taxes.

Accepted Answer

True

Question 19

Which asset is more liquid?

Accepted Answer

money in a savings account

Question 20

What is deflation?

Accepted Answer

The rate at which the general level of prices goes down

Question 21

Which is better, a bull market or a bear market?

Accepted Answer

Bull

Question 22

Bankruptcy in which a company stops all operations and goes completely out of business.

Accepted Answer

Chapter 7

Question 23

Allows a person that still has income to submit a plan to pay back debts in a few years.

Accepted Answer

Chapter 13

Question 24

Which is the correct orders the investments from Lowest risk to Highest risk?

Accepted Answer

Treasury bond−Diversified mutual fund–Stock

Question 25

Which of the following is generally true about401(k) and403(b) retirement plans?

Accepted Answer

all the above

Question 26

A bear market last longer than a bull market.

Accepted Answer

True

Question 27

What is the primary reason to issue stock?

Accepted Answer

to raise money to grow the company

Question 28

Which of the following will charge the highest interest rate?

Accepted Answer

pawn shops and payday lenders

Question 29

Bankruptcy that involves a reorganization of a debtor's business affairs and assets.

Accepted Answer

Chapter 11

Question 30

What is liquidity in business?

Accepted Answer

how quickly you can convert an asset to cash

Question 31

What is a credit union?

Accepted Answer

Non-profit institution that is owned by its members

Question 32

A long and severe recession in an economy or market.

Accepted Answer

Depression

Question 33

It's important to reconcile your checking account to make sure of mistakes

Accepted Answer

True

Question 34

Which type of life insurance never expires?

Accepted Answer

Whole

Question 35

Which institution(s) give loans?

Accepted Answer

all

Question 36

When you buy insurance, you and the insurance company are_______________.

Accepted Answer

entering into a contract

Financial Literacy Part 1

Questions 36

Financial Literacy Part 1

Questions 36