General Financial Literacy

Question 1

A loan for a fixed amount, at a fixed rate, for a fixed period of time

Accepted Answer

Installment

Question 2

Some people due to alot of$ or assets get additional liability insurance on their home & autos

Accepted Answer

True, True - this is known as an umbrella policy

Question 3

50/100/50 means that

Accepted Answer

50k per person medical/100k per accident/50k property damage

Question 4

A ____________ period is the amount of time you can pay insurance late without being cancelled

Accepted Answer

grace

Question 5

A way to diversify your investments by pooling investor's monies into a fund passive or active

Accepted Answer

mutual fund

Question 6

owning a home for most of US population has turned out to be a good idea - the home is an asset

Accepted Answer

True, True -but it also depends

Question 7

A privately owned firm/business decides to sell shares to the public for the first time this is

Accepted Answer

Initial Public Offering

Question 8

A ponzi scheme is one where _____________...

Accepted Answer

The new investor's money is used to show or pay high returns

Question 9

In 2005 Congress revised the bankruptcy laws in the US.

Accepted Answer

True, still do chapter 7 after debt counseling & means test

Question 10

Which five c's of credit -you total up your debt service & divide it by your income to get a %

Accepted Answer

capacity

Question 11

Open outcry-two live people meeting on the trading floor is how most financial products trade

Accepted Answer

False, False, most financial products trades use technology

Question 12

Bernie ___________ ripped a lot of people off- somewhere around 15/20 billion before returns

Accepted Answer

Madoff

Question 13

Most stocks & bonds are traded in Chicago, while commodities & precious metals trade in NYC, NY

Accepted Answer

False, the opposite is true switch Chicago & NYC, False

Question 14

A very important concept in investing a way to spread or minimize your risk

Accepted Answer

diversification

Question 15

A _____________ is a fee at the time of service

Accepted Answer

co-payment

Question 16

It is much better to start investing while young with small amounts of $ than to wait

Accepted Answer

True - because of the rule of 72 and compounding interest, True

Question 17

An APR is the

Accepted Answer

the total finance charges expressed as an annual rate

Question 18

The SEC and FINRA are the bodies, one governmental and one industry, that regulate

Accepted Answer

the stock and securities markets and brokers

Question 19

The rule of 72, compounding interest, and or the time value of money means

Accepted Answer

there is a time aspect to money and its value

Question 20

A ______________ is the person that receives the proceeds of a life insurance policy.

Accepted Answer

beneficiary

Question 21

Martha Stewart was accused of insider trading but went to jail for

Accepted Answer

Interfering with the investigation, obstruction of justice

Question 22

The transfer of risk from an individual or firm by a contract to a company is called

Accepted Answer

Insurance

Question 23

The risk/return principle states the lower the risk the lower the return & higher risk

Accepted Answer

the higher the potential return

Question 24

A technical _______________ market is a market that is down 20% from it highs & trending down

Accepted Answer

Bear

Question 25

A ___________________stock give you back dividends and dividend priority, but no voting rights.

Accepted Answer

preferred

Question 26

If you want to $ successful, one should live below your means, wisely invest 10%, PYF, and ____

Accepted Answer

set, write/record & use smart financial goals

Question 27

Commodities are things such as agricultural products - Forex is

Accepted Answer

international currency exchange

Question 28

A _______________ market is a market that is trending upwards in value over time.

Accepted Answer

Bull

Question 29

A captive agent sells for many independent companies while a broker can just sell for one

Accepted Answer

False - opposite, False

Question 30

_____ is a strategy that firms use to minimize the price exposure of a commodity they use alot

Accepted Answer

hedging

Question 31

The Federal Reserve Bank - our central bank - sets all banks & credit unions prime lending rate

Accepted Answer

False

Question 32

The DJIA or the Dow Jones Industrial Average is a leading index of 60 large US stocks

Accepted Answer

False

Question 33

What is the difference between an ETF and a mutual fund?

Accepted Answer

ETF trades like a stock, mutual fund does NAV at the end

Question 34

A credit card is best known as _______________ credit

Accepted Answer

Open or Revolving

Question 35

People have different values and attitudes when it comes to money.

Accepted Answer

True

Question 36

The safest so called risk free investment is a T-bill, or Treasury Bill - what is a T-bill?

Accepted Answer

US Short Term Gov Bond

Question 37

A 30 year loan used for real estate and buildings

Accepted Answer

Mortgage or home loan

Question 38

This is a type of life insurance that is good for a set amount of time, and then it lapses

Accepted Answer

term life insurance

Question 39

A stock ______ is when the company has to keep your ownership % the same & issues more shares

Accepted Answer

split

Question 40

Financial Literacy education has positive outcomes for those that receive & act on it.

Accepted Answer

True - studies show lower credit deliquentcies & more saving, True

Question 41

___________________ is the ability to buy now and pay later.

Accepted Answer

Credit

Question 42

A ________________ is a payment made a firm to stock holders

Accepted Answer

dividend

Question 43

The five c's of credit are

Accepted Answer

capital, character, collateral, conditions, capacity

Question 44

______________ is a type of self insurance or retaining risk - you transfer less

Accepted Answer

high deductibles

General Financial Literacy

Questions 44

General Financial Literacy

Questions 44