Financial Literacy Test Review

Question 1

What type of time frame should one have when investing in the stock market?

Accepted Answer

5 years

Question 2

Which of the following would be the safest place to put money away for a short period of time?

Accepted Answer

a certificate of deposit

Question 3

You will not pay interest on credit card purchases if you?

Accepted Answer

pay full balance by due date

Question 4

A Subsidized federal student loan is a loan that?

Accepted Answer

the Gov't pays the interest on until 6 mos after graduate

Question 5

When stock prices are increasing it is referred to as a?

Accepted Answer

Bull Market

Question 6

What is the measure of a mutual funds management fees?

Accepted Answer

expense ratio

Question 7

What advantage do Roth IRA, IRA, and 401Ks give investors?

Accepted Answer

a tax break for retirement investing

Question 8

Which tax form determines tax withholding?

Accepted Answer

W4

Question 9

Why is it important to contribute up to any match your company offers in a 401K?

Accepted Answer

you give up free money if you don't

Question 10

Which lender would charge the highest interest rate?

Accepted Answer

pay day lender

Question 11

Which of the following is most important in maintaining a good credit score?

Accepted Answer

paying your bills on time

Question 12

Which of the following would be something to NOT consider when looking for a credit card?

Accepted Answer

credit limit

Question 13

When an investment has more risk what should one get in return?

Accepted Answer

higher potential return

Question 14

What is the Fundamental Problem in Economics

Accepted Answer

Scarcity

Question 15

What does one pay in order to maintain insurance coverage?

Accepted Answer

premium

Question 16

Which of the following is NOT something that goes into determining your credit score?

Accepted Answer

bank account balances

Question 17

Which of the following is NOT a good reason to get a credit card?

Accepted Answer

to be able to pay off purchases monthly

Question 18

An index fund is set up to provide

Accepted Answer

an average return

Question 19

Why do companies issue stock?

Accepted Answer

to raise money

Question 20

Which form of college payment will NOT need to be paid back?

Accepted Answer

Grant

Questions 20