stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Financial Literacy Prep for W!SE 1-30 Flashcards | StudBud
Explore
/
Financial Literacy Prep for W!SE 1-30
Financial Literacy Prep for W!SE 1-30
30 terms
·
StudBud Administration
·
3,923 plays
Financial Literacy Review from Everfi
Flashcards
30 cards
F
Practice quiz
P
Host live
L
Questions
30
Answers
1
What are pensions and 401ks?
Ways to save for retirement
Insurance you buy
Taxes you pay
2
It's important to reconcile your checking account to make sure of mistakes
False
True
3
What is the primary reason to issue stock?
to raise money to grow the company
to help investors earn high rate of returen
increase investor awareness of the company
distribute the risk of bankruptcy across investors
4
What is the unauthorized use of a credit card?
using a credit card at a gas pump
using a credit card at the store
using a stolen credit card at a store
5
What is a cashier's check?
A check you receive from your friend out of their checkbook
A check you write to the bank
A check guaranteed by the bank that writes the check
6
The Federal Reserve System:
was created by Congress to provide a safer monetary sytem
is the central bank of the US
Is who you pay your taxes to
7
It's best to start saving for retirement when you're about 15 years away from retirement
False
True
8
The ______ tells you how many years it will take an investment to double.
bank
Rule of 72
Doublemint twin rule
9
Which asset is more liquid?
money in a certificate of deposit
money in a savings account
a house
10
What type of investment has the highest risk?
Stocks
Bond
Savings Account
11
What is a tax exemption?
Something ppl have to pay higher taxes than other citizens
Something that ppl get when they have dependants
Something that may be claimed by an indiv. to reduce taxes
12
Compounding of interest allows a principal amount to grow at a ____ rate than simple interest.
exchange
faster
slower
13
When you buy a ______________, you are loaning money to an organization.
Mutal Fund
Index Fund
Bond
Stock
14
What is deflation?
when the general level of prices goes up
When there is a reduction in the supply of money or credit
The rate at which the general level of prices goes down
15
You should reconcile your checking account
every week
every six months
when you get your monthly bank statement
once a year
16
Which is cheaper, term or whole life insurance?
Whole
Term
17
Which investment offers the lowest risk?
Bonds
Savings Account
Stocks
18
What is liquidity in business?
water
money invested in a house
how quickly you can convert an asset to cash
19
Which institutions give loans?
credit union
payday lender
pawn shop
all
20
What is a credit union?
Non-profit institution that is owned by its members
It's the same as a bank
Where ppl with bad credit acquire loans
21
The largest secondary market for stocks/securities in the U.S, is the_________.
NASDAQ
New York Stock Exchange
Dow Jones
22
Which earns you more money over time?
Simple interest
No interest
Compound interest
23
Which of the following will charge the highest interest rate?
pawn shops and payday lenders
Banks
credit unions
24
Someone gets your tax documents. If this person is not caught, you will likely be a victim of _
tax fraud
identity theft
murder
25
When you buy insurance, you and the insurance company are_______________.
sharing the risk
entering into a contract
breaking the law
26
Which type of life insurance never expires?
Whole
Term
27
Which type of insurance requires you to have a Primary Care Physician?
HMO
PPO
28
Which is better, a bull market or a bear market?
Bear
Bull
29
Which of the following is generally true about 401(k) and 403(b) retirement plans?
they restrict when you can withdraw your money
they offer some tax benefits
all the above
they are plans offered through employers
30
Which are the correct orders of investments from Lowest risk to Highest risk?
Diversified mutual fund−Treasury bond−Stock
Treasury bond−Diversified mutual fund–Stock
Treasury bond−Stock−Diversified mutual fund
Stock−Treasury bond−Diversified mutual fund
