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Financial Literacy Prep for W!SE 1-30 Flashcards | StudBud
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Financial Literacy Prep for W!SE 1-30
Financial Literacy Prep for W!SE 1-30
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Financial Literacy Review from Everfi
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
When you buy insurance, you and the insurance company are_______________.
entering into a contract
breaking the law
sharing the risk
2
What is the primary reason to issue stock?
increase investor awareness of the company
distribute the risk of bankruptcy across investors
to raise money to grow the company
to help investors earn high rate of returen
3
Which of the following is generally true about 401(k) and 403(b) retirement plans?
they restrict when you can withdraw your money
they are plans offered through employers
all the above
they offer some tax benefits
4
What are pensions and 401ks?
Ways to save for retirement
Taxes you pay
Insurance you buy
5
Which are the correct orders of investments from Lowest risk to Highest risk?
Treasury bond−Diversified mutual fund–Stock
Treasury bond−Stock−Diversified mutual fund
Stock−Treasury bond−Diversified mutual fund
Diversified mutual fund−Treasury bond−Stock
6
It's important to reconcile your checking account to make sure of mistakes
False
True
7
What is liquidity in business?
how quickly you can convert an asset to cash
money invested in a house
water
8
Compounding of interest allows a principal amount to grow at a ____ rate than simple interest.
exchange
slower
faster
9
Someone gets your tax documents. If this person is not caught, you will likely be a victim of _
tax fraud
identity theft
murder
10
Which investment offers the lowest risk?
Bonds
Savings Account
Stocks
11
The ______ tells you how many years it will take an investment to double.
Doublemint twin rule
bank
Rule of 72
12
The Federal Reserve System:
Is who you pay your taxes to
was created by Congress to provide a safer monetary sytem
is the central bank of the US
13
Which of the following will charge the highest interest rate?
credit unions
Banks
pawn shops and payday lenders
14
You should reconcile your checking account
every week
every six months
when you get your monthly bank statement
once a year
15
Which is better, a bull market or a bear market?
Bull
Bear
16
What is the unauthorized use of a credit card?
using a stolen credit card at a store
using a credit card at the store
using a credit card at a gas pump
17
Which asset is more liquid?
a house
money in a certificate of deposit
money in a savings account
18
What is a credit union?
Non-profit institution that is owned by its members
It's the same as a bank
Where ppl with bad credit acquire loans
19
Which institutions give loans?
pawn shop
all
payday lender
credit union
20
Which earns you more money over time?
Compound interest
Simple interest
No interest
21
What is deflation?
when the general level of prices goes up
When there is a reduction in the supply of money or credit
The rate at which the general level of prices goes down
22
The largest secondary market for stocks/securities in the U.S, is the_________.
New York Stock Exchange
NASDAQ
Dow Jones
23
When you buy a ______________, you are loaning money to an organization.
Bond
Stock
Index Fund
Mutal Fund
24
What is a cashier's check?
A check you receive from your friend out of their checkbook
A check you write to the bank
A check guaranteed by the bank that writes the check
25
Which type of insurance requires you to have a Primary Care Physician?
HMO
PPO
26
Which type of life insurance never expires?
Term
Whole
27
What type of investment has the highest risk?
Stocks
Bond
Savings Account
28
Which is cheaper, term or whole life insurance?
Term
Whole
29
It's best to start saving for retirement when you're about 15 years away from retirement
False
True
30
What is a tax exemption?
Something ppl have to pay higher taxes than other citizens
Something that ppl get when they have dependants
Something that may be claimed by an indiv. to reduce taxes
