Financial Literacy Quiz Flashcards

1

True or false: Stocks can lose all their value.

True
False

2

What is a mutual fund?

Government bond
Real estate investment
Group investment pool
Single stock investment

3

What does risk in investing mean?

No potential loss
Chance of loss
Fixed returns
Guaranteed profit

4

What is the purpose of a budget?

Ignore costs
Increase spending
Avoid saving
Track expenses

5

True or false: You should always budget for emergencies.

False
True

6

True or false: Financial aid is only for first-year students.

False
True

7

What is opportunity cost?

Job satisfaction
the loss or gain to better your future
Investment returns
Cost of living

8

True or false: You can improve your human capital by taking classes.

True
False

9

What is compound interest?

Interest on principal only
Simple interest calculation
Fixed interest rate
Interest on interest too

10

Which program helps low-income families?

CHIP
TANF
SNAP
Medicare

11

What is a capital gain?

Profit from investing
Fixed income
Loss from sale
Dividend payment

12

True or false: Credit card interest rates are lower than loans.

False
True

13

What is a credit card?

A cash payment
A savings account
A gift card
A type of loan

14

What is human capital?

Time management
Physical assets
Financial resources
Skills and knowledge

15

True or false: You should save 50% of your paycheck.

True
False

16

Which degree typically leads to higher earnings?

Associate's degree
High school diploma
Bachelor's degree
Trade certification

17

What is a fixed expense?

Unexpected cost
Variable cost
Same each month
One-time payment

Financial Literacy Quiz

Questions 17

Financial Literacy Quiz

Questions 17