Which of the following is the best definition of a minimum payment on a credit card?

The smallest payment that will keep a credit card holder in good standing

In the song 'Money for Nothing' by Dire Straits, what is the main theme of the lyrics regarding money?

Some people get money for doing nothing

A value can be described as…?

Something you desire to make your life more comfortable

What is a stock dividend?

Part of a company’s profit that is paid to shareholders

Are worth face value at maturity

The basic rule of a risk to return relationship in investing is that the ____________.

Higher the risk, the higher the rate of return

Money earned after taxes have been deducted

Money in your emergency fund could be wisely used

To pay for an unforeseen health expense

When people buy stock on the stock market…

The people selling the stock receive money.

is the rise in the cost of purchasing everyday goods

When should you begin saving for retirement?

As soon as you enter the workforce

The Dow Jones Industrial Average is a collection of what?

Stock from 30 corporations in the U.S.A.

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Financial Literacy Quiz

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Test your knowledge on budgeting, investments, risk management, and financial planning with this engaging quiz.

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Questions 35

Answers

1
If you make a mistake writing a check, you should write ________ over it and record it as a _____________ check
Bounced - Bounced check
Restricted - Restricted check
Void - Voided check
Outstanding - Outstanding check
2
What is the term for the study of how individuals and societies allocate their scarce resources?
Psychology
Sociology
Economics
Anthropology
3
Money taken out of a paycheck by an employer to pay taxes and health insurance is what?
Payroll deductions
Spending and Saving Plan
Variable expenses
Net Income
4
Taking a certain amount of all money you receive each month and setting it aside for long term goals is considered what?
Gross Income
A variable expense
PYF (Pay Yourself First)
A fixed expense
5
What is the largest coral reef system in the world?
Maldives
Great Barrier Reef
Hawaiian Islands
Red Sea Coral Reef
6
Which economic system is characterized by private ownership of resources and the means of production?
Capitalism
Communism
Fascism
Socialism
7
Which of the following is the best definition of a minimum payment on a credit card?
The smallest payment that will keep a credit card holder in good standing
A low introductory payment, offered for the first few months
Only the interest on the purchases that were made on the credit card
A fee that must be paid whether the card is used of not
8
At what age can individuals typically start receiving full Social Security benefits in the United States?
55
70
62
75
9
In the song 'Money for Nothing' by Dire Straits, what is the main theme of the lyrics regarding money?
Money is easy to come by
Some people get money for doing nothing
Money is the root of all evil
Money can't buy happiness
10
Which of the following is a type of retirement account that offers tax advantages for individuals saving for retirement?
Certificate of Deposit
401(k)
Savings Account
Checking Account
11
A value can be described as…?
A belief or idea you consider important or desirable
Something basic for your survival
A willingness to give up something now in exchange for a future benefit
Something you desire to make your life more comfortable
12
What is a stock dividend?
Part of a company’s profit that is paid to shareholders
The price for which the stock is sold to investment bankers
The price for which the stock is sold in stock markets
A capital gain
13
Which of the following can impact your credit rating?
Borrowing money from a friend to buy lunch
Living with your parents until you can afford to rent an apartment
Paying cash for a used car
Making a late car loan payment
14
U.S. savings bonds?
Have the same investment risks as stocks
Are worth face value at maturity
Are risky investments
Are purchased at face value
15
An investment that is convenient, professionally managed, and allows for diversification is?
Mutual Fund
U.S. Savings Bond
Certificate of Deposit
Stock
16
Advantages of a mutual fund include…
diversification
Neither a nor b
professional management by a proven fund manager
Both a and b
17
Which of the following could NOT be called income?
Interest paid on a loan
Interest received from a savings account
An allowance
A paycheck
18
What is the term for the process of setting aside money for future use?
Saving
Borrowing
Spending
Investing
19
The basic rule of a risk to return relationship in investing is that the ____________.
Higher the risk, the higher the rate of return
Risks and returns on investments are not related
Higher the risk, the lower the rate of return
Lower the risk, the higher the rate of return
20
Is the movie 'The Wolf of Wall Street' based on a true story?
False
True
21
Net pay is...
Another term used for NV State Taxes
Another term used for Social Security taxes
Money earned before taxes are deducted
Money earned after taxes have been deducted
22
What is the term for the total value of a person's assets minus their liabilities?
Expenses
Net Worth
Debt
Income
23
The process of earning interest on interest is called…
Time value of money
Compounding
Rate of return
Diversification
24
Money in your emergency fund could be wisely used
To pay for an unforeseen health expense
To spend on a night out
To pay a down payment on a new car
to pay for a vacation
25
When people buy stock on the stock market…
The people buying the stock receive money
The corporation receives money
The people selling the stock receive money.
The corporation loses money
26
A budget can help you reach a final financial goal by?
Giving you tools to Pay Yourself First and save.
Showing you Total Monthly Income and Total Monthly expenses
Allowing you to see where you can cut back on spending
All the above
27
Amount of money spent to buy something or do something that is the exact same every month is?
Fixed expense
Flexible expense
Periodic expense
Term expense
28
Which of the following is a common way to reduce debt?
Ignoring bills
Taking out more loans
Increasing credit card spending
Making extra payments
29
Which one of the following types of investments has the lowest risk and lowest rate of return?
stocks
Savings bonds
collectibles
Real estate
30
Inflation is....
Always 5% per year
The reason most people get ahead by saving money under their mattress
is the rise in the cost of purchasing everyday goods
the annual rate of return on a savings account
31
In the future, a dollar will be worth…
More than a dollar today.
Both a and b
Less than a dollar today
Same as the dollar today
32
When should you begin saving for retirement?
Twenty-five years before you plan to retire
Thirty-five years before you plan to retire
As soon as you enter the workforce
When you begin earning at least $85,000 a year
33
The Dow Jones Industrial Average is a collection of what?
Stock from 500 corporations in Europe
None of the above
Stock from 25 corporations in NYC
Stock from 30 corporations in the U.S.A.
34
Which one of the following types of investments has the highest risk and the highest rate of return?
Savings account
Government Bonds
Stocks
Savings Bonds
35
Which of the following agencies provide free credit reports for consumer?
FDA
Credit Unions
Transunion, Experian, Equifax
The Securities Exchange Commission

Financial Literacy Quiz Flashcards | StudBud