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W!SE Financial Literacy Review Flashcards | StudBud
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W!SE Financial Literacy Review
W!SE Financial Literacy Review
20 terms
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Financial Literacy W!SE Test
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
All of a persons assets collectively make up their _______?
beneficiaries
probate
estate
will
2
Which investment type is the safest?
CD- Certificate of Deposit
Government Bonds
Savings Account
Mutual Funds
3
What does the Rule of 72 determine?
the interest rate needed to compound your money
how long it takes to pay off a debt
how long it takes to double an investment
the interest rate needed to triple your money
4
Why does U.S. currency have value?
because the paper is really expensive
because it is backed by gold
it doesn't
because you believe it does
5
Which life insurance type could a policy holder actually outlive?
Whole Life
Universal
Term Life
Variable Life
6
Why is compound interest on an investment way better than simple interest?
it isn't; Mr. Bedell is lying
it doubles your money instantly
it reduces your taxable income
interest gets reinvested into the principal; gains even more
7
Why should you diversify your portfolio (types of investments)?
so if some fail, you have others to fall back on
you shouldn't; Invest all your money in 1 stock instead!!!!
because they might all depreciate
to look like a boss
8
Which places would offer predatory loans?
Pawnshops
Title Loan Companies
Credit Unions
Payday Lenders
9
Which thing(s) would change someones W-4 status for federal taxation?
getting married/divorced
having children
buying a dog
buying a house
10
What does PYF mean and what percentage?
Pay Yourself First; 10%
Pay Your Finances; 5%
Push Your Friends; 25%
Percentage Yield Futures; 30%
11
If budgeting correctly, you shouldn't spend more than ___% of your income on housing.
25%
50%
10%
35%
12
In which retirement plan does your company match your contributions dollar for dollar?
Traditional IRA
401K
Roth IRA
403B
13
What are the consequences of paying just the minimum on a credit card balance each month?
late fees
takes way longer to pay off
points and rewards
increase in total interest paid in the end
14
The deed to a house is kept by the bank as _______ until the homeowner pays off the mortgage.
collusion
collateral
credit
capacity
15
What does liquidity reference?
a glass of water
how quickly you can get a loan
the interest rate of an investment
how quickly you can convert an investment/asset to cash
16
Which of the following is NOT one of the 3 major credit reporting agencies?
Equifax
TransFax
Experian
TransUnion
17
What word is used to describe the monthly payment to have an insurance policy?
premium
copay
actuary
deductible
18
Which investment type is the riskiest?
Corporate Bonds
Real Estate
Collectibles (ex: comic books, baseball cards)
Stocks
19
Which type of identity theft involves e-mail scams hoping to get your personal information?
Skimming
Hacking
Stealing
Phishing
20
A person with a bad credit score would likely be offered a loan with ____________.
lower interest rates/lower credit limit
lower interest rates/higher credit limit
higher interest rates/higher credit limit
higher interest rates/lower credit limit
