Financial Literacy Quiz Flashcards

1

Which is a savings account?

For Emergency
Credit Cards
Cash
Personal Spending

2

What things can you cut down on?

Car Loans
Life Insurance
Shopping
Mortgages

3

What is "APR" related to loans

Annual cost
Average rate
Payments
Borrow

4

What is the measure of outstanding debts relative to income

Loan to value ratio
Debt to income ratio
Credit score
Payment history

5

Which investment carries the highest risk?

Bonds
Stocks
Certificate of deposit
Savings account

6

What is the term for borrowing money to buy a home?

Auto loan
Personal loan
Mortgage loan
Credit card loan

7

What is an emergency fund for?

Investments
Bills
Emergencies
Vacation

8

What is a budget?

Savings
Credit
A Plan
Investing

9

What is a mutual find?

Mortgage loan
Investment pool
Savings account
Retirement plan

10

What is an asset?

Student Loans
Unpaid Bills
All Accounts
Mortgages

11

What is the purpose of interest?

Spend
Earn
Save
Borrow

12

What is the primary purpose of insurance?

Reduce risk
Increase wealth
Go famous
Invest in stocks

13

What is a stock?

Bank account
Real estate
Bond
Company ownership

14

What is the purpose of a retirement account

Retirement income
Have emergency funds
Pay off student loans
Save for vacation

15

What is the minimum recommended emergency fund size?

One to two years
One to two months
Three to six months
One to two weeks

16

What is the primary purpose for a will?

Distribute assets
Start a business
Buy a home
Create debt

17

What is a credit score used to assess?

Credit worthiness
Expenses
IQ
Height

18

What is a credit report?

Credit history record
Bank statement
Monthly budget
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Financial Literacy Quiz

Questions 18

Financial Literacy Quiz

Questions 18