Financial Literacy Test 1

What is passive income?

Using the rule of 72, how long would it take an investment to double if invested at 6%?

Which of the following is NOT a source of income?

Which of the following would you invest in with AFTER TAX money?

Should you ever borrow against your retirement?

Which of the following is a horrible investment?

What happens to risk when you make sure your money is spread out appropriately?

What are viaticals?

What is meant by the term "liquidity?"

What is portfolio income?

Which of the following have an effect on the income level of the earner?

Which one of these would you invest in with PRE-TAX money?

When liquidity goes up, what happens to the rate of return?

A debt instrument that is used by companies to raise money without having to sell more stock.

Which of the following is the least liquid investment?

What happens when you borrow from your retirement and pay yourself back plus interest?

Who can contribute to an IRA?

What is the term used to describe spreading your money around?

What is the formula for compound interest?

What is earned income?

Interest that lets you earn interest both on the amount invested AND interest already earned.

Which of the following is the most liquid investment?

IRA is an acronym for which of the following?

If you save money up for a rainy day, aka emergency fund, where should it be stored?

You should save money for the following:

What is the purpose of the rule of 72?

What typically happens to pension accounts when companies go out of business?

Completing a direct transfer request to move your money from one IRA to the next is called a:

What happens to money taken out of a traditional IRA when it is time to retire?

Which of these is considered the better investment by Dave Ramsey?

Using the rule of 72, at what percentage rate would you need to invest to double it in 10 yrs?

Should you ever borrow money to invest?

What is the formula for simple interest?

A share of ownership in a company is called a:

Who owns the money for the pension plans?

What happens to money taken out of a Roth IRA?