Which of the following best describes a career?

An occupation with opportunities for long-term progress

How does a Roth IRA differ from a traditional retirement account?

Withdrawals in retirement are tax-free

What is a budget used for?

To estimate income and expenses over a period of time

Which of the following statements is strue about the stock market?

It is a place where investors trade shares of publicly owned companies

What is the primary purpose of a 401(k)

To save for retirement through employer-sponsored contributions

A fixed regular payment for work

Money owed to an individual or institution

Why is it important to maintain a budget?

To track income and expenses and avoid unnecessary debt

A loan used to purchase property

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Financial Literacy Exam Review

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Questions 19

Answers

1
A fixed regular payment, typically paid on a monthly or biweekly basis
Financial Bonus
401(k)
Salary
Debt
2
Which of the following best describes a career?
A temporary job for extra income
A casual side hustle
An occupation with opportunities for long-term progress
A one-time freelance project
3
How does a Roth IRA differ from a traditional retirement account?
Contributions ar emae with pre-tax dollars
It does not allow investment in stocks or bonds
It is only available through an employer
Withdrawals in retirement are tax-free
4
What is a budget used for?
To invest in the stock market
To estimate income and expenses over a period of time
To calculate interest rates on loans
To apply for a credit card
5
An employer-sponsored retirement plan that allows employees to contribute a portion of their salary to be invested
Refund
401(k)
Mortgage
Salary
6
A marketplace where investors can buy and sell shares of publicly traded companies
Super Market
Stock Market
Bank
Financial Reserve
7
The action or process of investing money for profit
Financial investment
Money Market Account
Savings Account
Checking Account
8
Which of the following is an example of a financial investment?
Taking out a mortgage for a home
Buying stocks in a company
Keeping cash in a shoebox
Spending all earnings on entertainment
9
Which of the following statements is strue about the stock market?
It guarantees profits for all investors
It only allows banks to buy and sell shares
It is not influence by economic conditions
It is a place where investors trade shares of publicly owned companies
10
What is the primary purpose of a 401(k)
To track stock market trends
To save for retirement through employer-sponsored contributions
To provide a loan for purchasing a home
To serve as a checking account for daily expenses
11
Something, typically money, that is owed or due
Debt
Career
Salary
Financial Investment
12
A salary is
A fixed regular payment for work
A one-time financial bonus
A percentage of investment returns
A form of debt repayment
13
An estimate of income and expenses for a set period of time
Financial Management
High yield savings account
Budget
Debt
14
What is debt?
A type of budgeting method
Extra funds saved for retirement
A financial reward given for good credit scores
Money owed to an individual or institution
15
A legal agreement by which a bank or other creditor lends money in exchange for taking the title of the debtor's house
401(k)
Stock Market
Mortgage
Roth IRA
16
Why is it important to maintain a budget?
To avoid paying bills on time
To increase spending on entertainment
To apply for additional loans
To track income and expenses and avoid unnecessary debt
17
An occupation for a significant period of a person's life
Retirement
Career
High School
College
18
A tax-advantaged retirement savings account where contributions are made with after-tax dollars
Roth IRA
Financial planning
Budget
Checking Account
19
A mortgage is
A type of retirement account
A savings account for emergencies
A loan used to purchase property
A tax-free financial investment

Financial Literacy Exam Review Flashcards | StudBud