The most common relationship between risk and return in investing can be stated as:

higher risk indicates higher return

Which best describes inflation?

rise in the general level of prices

Base price that is quoted is the price of the car:

with only the standard equipment, no extra options

Which of the following is not an index?

SEC (Securities & Exchange Commission)

A need is best defined as

something thought to be a necessity or requirement

What would you recommend Jenny do to build a positive credit history as she is applying for credit for the first time?

Obtain a secured credit or have a co-signer for a credit card.

If a credit card is used fraudulently, what is the cardholder's personal liability for the unauthorized charges?

liability is limited to $50 for unauthorized charges if reported in 60 days

An investment will result in the largest return when

investing longer, with high interest rate

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Practice Financial Literacy

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Financial Literacy questions to review for final exam.

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Questions 15

Answers

1
Which savings tool would be most liquid and accessible?
Any of the above savings tools
Certificate of Deposit
Money Market Deposit Account
Checking account
2
A plan for managing income, spending and saving is called...
Account balance
Budget
Credit Account
Investment
3
The most common relationship between risk and return in investing can be stated as:
higher risk indicates higher return
lower risk indicates higher return
higher risk indicates lower return
no relationship exists between risk and return
4
Which best describes inflation?
projected value of an investment in a specified period of time
rise in the general level of prices
number of times something happens to money
uncertainity about a return on investment
5
A share in ownership of a company is called
Return
Stock
Offer
Capital
6
Base price that is quoted is the price of the car:
from which the dealer will negotiate with the buyer
that the buyer has in mind when negotiating
with only the standard equipment, no extra options
with the most popular options to attract consumers
7
Which is TRUE of mutual funds?
they are a form of real estate
they are diversifed
they are risky
they are a collection of stocks from one industry
8
What does IPO mean?
Initial Preferred Offering
Initial Peace Offering
Initial Public Offering
Introductory Public Offering
9
Which of the following is not an index?
NASDAQ
S&P 500
Dow Jones
SEC (Securities & Exchange Commission)
10
A need is best defined as
the end result of something a person intends to acquire
something unnecessary but desired to increase quality of living
a fundamental belief or practice about what is desirable or worthwhile
something thought to be a necessity or requirement
11
Depositors can have multiple accounts insured at the same bank as long as each account is no more than $100,000 each.
False
True
12
What would you recommend Jenny do to build a positive credit history as she is applying for credit for the first time?
Obtain a secured credit or have a co-signer for a credit card.
Re-apply for credit with a letter of recommendation
Ask her mother to borrow her credit card
Acquire several credit cards
13
If a credit card is used fraudulently, what is the cardholder's personal liability for the unauthorized charges?
cardholder has no liability if reported within 60 days
liability will vary depending on the amount that was fraudulently charged
cardholder is liable for all unauthorized charges
liability is limited to $50 for unauthorized charges if reported in 60 days
14
An investment will result in the largest return when
investing once and make no additional investments
investing at high rates on anything
investing a small amount at a high rate
investing longer, with high interest rate
15
What are the two main types of stocks?
Core, Permanent
Core, Preferred
Common, Perfect
Common, Preferred

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