Fin Lit Quiz Challenge- MS Edition

Question 1

Banks and other financial institutions loan funds received from depositors to _________.

Accepted Answer

Borrowers

Question 2

In choosing a cell phone plan, the least important factor for making a choice would be:

Accepted Answer

The color of the phone

Question 3

A budget is used to balance these two things:

Accepted Answer

Income & Expenses

Question 4

In your budget, this is an example of a fixed cost:

Accepted Answer

All of the Above

Question 5

You worked 10 hours at $15 per hour your first week. How much is your paycheck for the week?

Accepted Answer

$150 – taxes

Question 6

A young person can have an advantage over an adult in terms of saving for the future because?

Accepted Answer

Your people have more years ahead for saved money to grow.

Question 7

As an individual, what would count as a liability?

Accepted Answer

Auto loan

Question 8

When buying a car, important factors to consider are:

Accepted Answer

Mileage and Maintenance Costs

Question 9

If you do not have enough income to cover your expenses, you should:

Accepted Answer

Increase income, decrease expenses.

Question 10

Key features to know about a credit card include:

Accepted Answer

All of the above

Question 11

Which factor(s) influence how much your savings or investment account can grow?

Accepted Answer

All of the above

Question 12

What is a product that allows people to pay a fee now to transfer the costs to another later?

Accepted Answer

Insurance

Question 13

Giving up one thing to get something else is called a:

Accepted Answer

Tradeoff

Question 14

Which of these financial assets is the most liquid:

Accepted Answer

Savings Account

Question 15

You invest $1,000 and earn 5% annual interest. At the end of the year, you will have:

Accepted Answer

$1,050

Question 16

A mortgage is a loan to purchase a:

Accepted Answer

Home

Question 17

In terms of "wants" and "needs", which is a "want"?

Accepted Answer

Cable TV

Question 18

If you use a credit card, you should ideally:

Accepted Answer

Pay the full balance each month.

Question 19

Which of the following would be considered expenses?

Accepted Answer

All of the above

Question 20

If you own stock in a company, you receive your earnings as:

Accepted Answer

Dividends

Question 21

Federal income taxes are:

Accepted Answer

Subtracted each pay cycle for workers

Question 22

When interest is paid on previous interest, good if saving, bad if borrowing, is called:

Accepted Answer

Compounding

Question 23

Required payments to Federal, state or local governments are called:

Accepted Answer

Taxes

Question 24

Something valuable that belongs to you, for example, a bank account:

Accepted Answer

Asset

Question 25

As a stockholder or bondholder, the value of your investment:

Accepted Answer

Could either increase or decrease

Question 26

The Prime Interest Rate was about 18% in 1981. How does this rate compare historically?

Accepted Answer

Above Average

Question 27

In your budget, this is an example of a variable cost:

Accepted Answer

Clothing

Question 28

The Dow Jones Industrial Average is associated with:

Accepted Answer

Stocks

Question 29

When a financial asset can easily be converted into cash, it is said to be:

Accepted Answer

Liquid

Question 30

Examples of “Investing in Yourself” include:

Accepted Answer

All of the Above

Question 31

Gross income is most often…

Accepted Answer

More than net income.

Question 32

People with less education tend to earn ________ incomes than people who have more education.

Accepted Answer

Lower

Question 33

This type of tax is taken out of a paycheck to pay for things like national parks or the Army.

Accepted Answer

Federal Tax

Question 34

When you invest in a company’s stock,

Accepted Answer

You become one of the owners.

Question 35

Different careers require different:

Accepted Answer

All of the Above

Question 36

In terms of "wants" and "needs", which is "need"?

Accepted Answer

Winter Coat

Question 37

When you invest in a company bond,

Accepted Answer

You lend your money to the company.

Question 38

Entrepreneurs are known for:

Accepted Answer

Taking Risks

Question 39

When a stock “splits”, the immediate value of your holdings in the stock:

Accepted Answer

Stays the Same

Question 40

Forms of income earned from financial investments include:

Accepted Answer

All of the Above

Question 41

Which schedule of compounding is least favorable to a saver?

Accepted Answer

Annually

Question 42

This term means the money you get from a paid job, allowance or from cash gifts:

Accepted Answer

Income

Question 43

When interest compounds…

Accepted Answer

Interest gets added to the sum of money (the principal).

Question 44

Which schedule of compounding is most favorable to a lender?

Accepted Answer

Daily

Question 45

As an individual, what would count as an asset?

Accepted Answer

Your bank account

Question 46

The price of a $13,000 car increases by 10%. How much will the car now cost?

Accepted Answer

$14,300

Question 47

If you earn 2% on your savings & inflation rises at 3%, the purchasing power of your savings...

Accepted Answer

Decreases

Question 48

This is a secret code used to access your bank account:

Accepted Answer

PIN (Personal Identification Number)

Question 49

In your budget, this is an example of a fixed cost:

Accepted Answer

Rent

Question 50

For loans, if the risk of nonpayment is high, it is likely that the rate charged will be:

Accepted Answer

Higher than Average

Question 51

When you invest in a bond, you receive your earnings as:

Accepted Answer

Interest

Question 52

Retirement income paid by the US Federal Government is called?

Accepted Answer

Social Security

Question 53

Extra money you earn in a savings account or have to pay when you borrow is called:

Accepted Answer

Interest

Question 54

If your bank charges you $2 to use the ATM and you use it twice a week, the annual charges are:

Accepted Answer

$208

Question 55

A good place to open your first checking account would be with:

Accepted Answer

A local bank

Question 56

When would you be most likely to be asked for your Social Security number?

Accepted Answer

All of the above

Question 57

When you earn or receive money, you should “pay yourself first”. What does this mean?

Accepted Answer

Put some $ in saving before spending.

Question 58

Which of these is the best investment of time and talent for a young person’s future:

Accepted Answer

Education

Question 59

An investment that uses $$$ from many to invest in stocks, bonds or other types of investment.

Accepted Answer

Mutual Funds

Question 60

The fee that you pay for an insurance policy is called a:

Accepted Answer

Premium

Question 61

This is the word for income after all taxes and other deductions have been taken out:

Accepted Answer

Net Income

Question 62

Deposits in these are guaranteed by the Federal Government up to $250,000 per depositor:

Accepted Answer

Bank Savings Accounts

Question 63

Which of the following financial instruments is not associated with borrowing?

Accepted Answer

Debit Card

Question 64

Which animal is associated with a stock market where prices go down for a long period of time?

Accepted Answer

Bear

Fin Lit Quiz Challenge- MS Edition

Questions 72

Fin Lit Quiz Challenge- MS Edition

Questions 72