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Introduction to Financial Literacy Flashcards | StudBud
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Introduction to Financial Literacy
Introduction to Financial Literacy
29 terms
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Units 1 - 4
Flashcards
29 cards
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Questions
29
Answers
1
When it comes to buying stocks, the goal is to...
Buy low! Hold for a time, then sell for more than you paid
Do your homework! Follow the advice of the professionals
Be patient! Wait for stock prices to double before investing
Diversify! Buy a lot of high risk stocks
2
A _ pools money from many investors for the purpose of investing in stocks, bonds, and others
Mutual Fund
Certificate of Deposit (CD)
Stock Market
Government Bond
3
If you withdraw money from a CD before reaching maturity, you have to pay a withdrawal penalty
True
False
4
Becoming financially literate means having the _ to make _ with all of your financial resources
experience and advice; wise monetary investments
money and know-how; educated assumptions
skills and knowledge; informed and effective decisions
5
Credit and debit cards are essentially the same thing since they are both are payment cards
False
True
6
Mortgages are used to finance a...
home
smartphone
car
college tuition
7
Investing presents a great risk because a strong return is not always guaranteed
True
False
8
What is one reason why professional athletes are filing for bankruptcy?
they just don't understand their finances
no worker's compensation for in-game injuries
delayed payments
identity theft
9
Select the major decisions you are faced with when you earn a dollar
Save
Donate
Invest
Spend
10
What is one way that banks earn their money?
employee salaries paid by the government with citizen taxes
lend money at higher interest rates than what they're paying
print money for the economy & keep some for daily operations
customer money for daily expenses & company money for bills
11
What is one reason for why gold so special?
not prone to corrosion over time
can be melted at a lower temperature than other metals
shine and texture are cleaner than other metals
only royalty/people in power were allowed to have it
12
What is a "Savings Account"
offers more bank options (making purchases or paying bills)
keep money in a bank and earn a small amount of interest
borrow money from your bank for purchases, then pay it back
13
What are two ways that some great investors research stocks?
rely heavily on advice from stock analysts
go online to check out recent presentations to investors
talk with company employees for insider information
read recent news releases
14
If you are going to finance a purchase, what do you need to find out about the loan first?
Can I max out my credit cards to pay back the loan?
How long will I be paying back this loan?
Will I be able to use this loan to pay off other loans?
Why is the APR the same as the interest rate?
15
Compared to teens in other countries, American teens are above average in financial literacy
True
False
16
In 2017, the US Government uses...
The Barter System
The Gold Standard
Gold and Silver Coins
Fiat Money
17
What percentage of people reported they don't have enough savings to last at least six months?
60%
15%
30%
50%
18
What percentage of Americans reported they are currently living paycheck to paycheck?
70%
10%
40%
25%
19
What are two benefits to taking out a Private Loan?
if you have strong credit, you may get low interest rates
a portion of your wages could be taken by the government
there are fewer options for when and how much you repay
lower monthly payments
20
Becoming financially literate is only important to professional athletes
False
True
21
Becoming financially literate allows you to __
cash in your $1 for 100 pennies and scatter them everywhere
buy happiness
go from stoked to broke
live a life within your financial means
22
Government Bonds are essentially considered risk-free
False
True
23
What is an examples of a "Good"
doctor visit
food
car repair
haircut
24
Financing means you take out a loan in order to make a purchase, then pay it back over time
True
False
25
Owning a home is one of the biggest investments someone will ever make
False
True
26
A high credit score means you are likely to pay back loans in full and on time
True
False
27
Select two examples of bad debt
overspending
auto loan
avoid paying taxes
private college loan
28
When you buy stock, you are buying a piece of the company for the chance to make more money
True
False
29
Whether you open a savings account or get a credit card, you always want high interest rates
False
True
