Financial Literacy Mental "Warm Up"

Question 1

Which group may have the greatest problem during periods of high inflation that last years?

Accepted Answer

Older people living on fixed retirement income

Question 2

Preferred stock holders do not have voting privileges like common stock holders

Accepted Answer

True

Question 3

Stocks tend to earn more than inflation over time and are essentially risk-free

Accepted Answer

False

Question 4

How often can you get a free credit report?

Accepted Answer

Once a year

Question 5

Which of the following best describes the primary sources of income for most people age 20-35?

Accepted Answer

Salaries, wages, tips

Question 6

Being on a budget means:

Accepted Answer

A plan of your expenses to be less than/equal to your income

Question 7

$100 in a savings account earning 2 percent interest a year, how much will you have in 5 years?

Accepted Answer

More than $102

Question 8

Bonds are used to raise money and create debt

Accepted Answer

True

Question 9

What type of bank account typically pays no interest on deposits?

Accepted Answer

Checking

Question 10

Which of the following typically charges the highest fees?

Accepted Answer

Payday lender

Question 11

Which of the following is a key benefit of a 401(k) plan?

Accepted Answer

You may be eligible for an employer match

Question 12

Stocks trade a varying prices all day

Accepted Answer

True

Question 13

By what date must federal taxes typically be paid?

Accepted Answer

April 15

Question 14

The form filled out by most students to get financial aid is the:

Accepted Answer

FAFSA

Question 15

Stocks represent ownership in a company

Accepted Answer

True

Question 16

Which of the following provides best protection from identify theft?

Accepted Answer

Shred documents that contain personal information

Question 17

The term referring to the rate of yearly interests for your credit card is

Accepted Answer

APR

Question 18

Diversification can eliminate risk from an investment portfolio.

Accepted Answer

True

Question 19

Which of the following is NOT correct about most ATM (Automated Teller Machine.) cards?

Accepted Answer

You can get cash anywhere in the world with no fee.

Question 20

Which will benefit you the most financially?

Accepted Answer

A savings account that compounds interest daily

Questions 20