What is the concept of "net worth"?

a. The difference between an individual's assets and liabilities

What is the concept of a "bear market"?

b. A market in which stock prices are falling

What is a credit score?

a. A numerical representation of an individual's creditworthiness

What is diversification?

d. Spreading your investments across multiple asset classes to reduce risk

What is the purpose of asset allocation?

c. To spread investments across different asset classes to reduce risk

What is a mutual fund?

c. investments from multiple investors to purchase a diversified portfolio

What is the difference between a secured loan and an unsecured loan?

b.secured loan: backed by collateral, unsecured: not backed by collateral

What is the concept of "compound interest"?

Interest calc. on both the initial principal and accumulated interest

What is the concept of a "bull market"?

A market in which stock prices are rising

What is the concept of "grants" for college students?

a. Financial aid that does not need to be repaid

What is the difference between a traditional 401(k) and a Roth 401(k)?

401 K : pre-tax dollars Roth IRA : after-tax dollars

What is the concept of "pay yourself first"?

a. Saving a portion of your income before paying for any other expenses

What is the concept of a "credit limit" on a credit card?

a. The maximum amount of credit an individual can have on a credit card

What is the concept of dollar-cost averaging?

Investing a fixed amount of money at regular intervals

What is the recommended emergency fund size?

c. 6 months of expenses to be smart

What is the concept of "compounding" in investing?

earning interest on both initial principal / accumulated interest over time

What is the difference between a traditional IRA and a Roth IRA?

a. Trad. IRA: tax-deductible Roth IRA: tax-free

What is the difference between a stock and a bond?

a. Stocks = ownership in a company, Bonds = a loan to a company

What is a FICO score?

a. A credit score used by lenders to determine creditworthiness

What is the difference between a traditional savings account and a high-yield savings account?

a. high yield - higher interest traditional - lower interest

What is the concept of "diversification" in investing?

a. Spreading investments across different assets to reduce risk

What is the purpose of a credit report?

b. To provide a detailed record of an individual's credit history

b. The decrease in the value of money over time

What is the concept of a "work-study" program for college students?

A program that allows students to work part-time jobs on campus to help pay

What is a stock market index?

a. A measure of the overall performance of a group of stocks

What is compound interest?

d. when interest build on interest, b. Interest that's paid by principal amount + any accumulated interest

What is the concept of a "grace period" on a student loan?

no interest is charged while in school

What is the purpose of a "credit score"?

reveal ones creditworthiness / determine likelihood of repaying debts

What is the concept of "buy and hold" investing?

Buying stocks and holding them like a baby for a long time (symbolic), Buying stocks and holding onto them for a long time, regardless

What is the concept of a "minimum payment" on a credit card bill?

smallest amount of money a holder must pay each month to avoid late fees

What is a credit utilization ratio?

d. Amount of credit an individual has available/ amount they used

What is the concept of "diversifiable risk"?

a. Risk that can be reduced or eliminated by diversifying a portfolio

d. A payment made by a corporation to its shareholders

What is the concept of "emotional investing"?

Making investment decisions based on emotions

What is the difference between a debit card and a credit card?

Debit Card: money you have. Credit Card: borrowed money

What is the concept of "asset allocation" in investing?

distribution of investments across different asset classes

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CCR Final

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Questions 38

Answers

1
What is the concept of "net worth"?
a. The difference between an individual's assets and liabilities
b. The interest rate on a savings account
c. The amount of debt an individual has
d. None of the above
2
What is the concept of a "bear market"?
b. A market in which stock prices are falling
d. A market in which interest rates are rising
a. None of the above
c. A market in which stock prices are rising
3
What is a credit score?
c. The interest rate on an individual's credit card
d. The amount of debt an individual has
a. A numerical representation of an individual's creditworthiness
b. The amount of credit an individual has available to them
4
What is diversification?
a. Investing in real estate only
d. Spreading your investments across multiple asset classes to reduce risk
c. When you have hoes in different area codes
b. Investing all of your money in one stock
5
What is the purpose of asset allocation?
b. To invest only in stocks
d. None of the above
c. To spread investments across different asset classes to reduce risk
a. To invest only in bonds
6
What is a mutual fund?
d. A type of bank account used to help mutuals fund an endeavor
c. investments from multiple investors to purchase a diversified portfolio
a. A type of stock
b. A type of bond that with only your money
7
What is the difference between a secured loan and an unsecured loan?
d. Insecurities
b.unsecured loan: backed by collateral, secured: not backed by collateral
a. Both secured and unsecured loans require collateral
b.secured loan: backed by collateral, unsecured: not backed by collateral
8
What is the concept of "compound interest"?
Interest calc. by the distinct purchase price / sale price of a stock
Interest calc. on both the initial principal and accumulated interest
None of the above
Interest calc. only on the initial principal of an investment
9
What is the concept of a "bull market"?
A market in which interest rates are rising
when bulls are for sale on the market
A market in which stock prices are rising
A market in which stock prices are falling
10
What is the concept of "grants" for college students?
c. Financial aid that is awarded based on academic merit
b. Financial aid that needs to be repaid with interest
d. None of the above
a. Financial aid that does not need to be repaid
11
What is the difference between a traditional 401(k) and a Roth 401(k)?
401 K : pre-tax dollars Roth IRA : after-tax dollars
401 K : tax free Roth IRA : not free
Both have same tax advantages
d. None of the above
12
What is the concept of "pay yourself first"?
d. Getting paid before your coworkers
b. Paying off debt before spending money on anything else
c. Investing in stocks before investing in bonds
a. Saving a portion of your income before paying for any other expenses
13
What is the concept of a "credit limit" on a credit card?
d. When you're downright broke
a. The maximum amount of credit an individual can have on a credit card
b. The minimum payment required on a credit card bill
c. The interest rate on a credit card
14
What is the concept of dollar-cost averaging?
b. Investing only when stock prices are low
d. Average cost of a dollar in the U.S
c. Investing a large sum of money all at once
Investing a fixed amount of money at regular intervals
15
What is the recommended emergency fund size?
b. 3 months of expenses because your house burned
d. 12 months of expenses because you died
c. 6 months of expenses to be smart
a. 1 month of expenses for a suprise baby
16
What is the concept of "compounding" in investing?
None of the above
earning interest only on the initial principal of an investment
calc. the difference between purchase price / sale price of a stock
earning interest on both initial principal / accumulated interest over time
17
What is the difference between a traditional IRA and a Roth IRA?
d. Ones old and the other is new
a. Trad. IRA: tax-deductible Roth IRA: tax-free
c. Both traditional and Roth IRAs have the same tax advantages
b. Roth IRA: tax-deductible Trad IRA: tax-free
18
What is the difference between a stock and a bond?
a. Stocks = ownership in a company, Bonds = a loan to a company
d. Neither stocks nor bonds represent ownership in a company
b. Bonds = ownership in a company, Stocks = a loan to a company
c. Both stocks and bonds represent ownership in a company
19
What is a FICO score?
c. The cost of borrowing money
a. A credit score used by lenders to determine creditworthiness
b. The interest rate on a mortgage loan
d. None of the above
20
What is the difference between a traditional savings account and a high-yield savings account?
c. Both savings accounts have the same interest rates
d. None of the above
a. traditional- higher interest high yield- lower interest
a. high yield - higher interest traditional - lower interest
21
What is the concept of "diversification" in investing?
d. None of the above
b. Investing only in stocks
a. Spreading investments across different assets to reduce risk
c. Investing only in bonds
22
What is the purpose of a credit report?
d. To provide a list of an individual's assets
a. To determine an individual's income
c. None of the above
b. To provide a detailed record of an individual's credit history
23
What is inflation?
a. The increase in the value of money over time
d. When the graph goes up
b. The decrease in the value of money over time
c. The amount of interest you earn on an investment
24
What is the concept of a "work-study" program for college students?
A program that offers scholarships to high-achieving students
Students work to study work on study for work-study reasons
A program that allows students to work part-time jobs on campus to help pay
A program where students work full-time during the summer months
25
What is a stock market index?
b. The price of an individual stock
a. A measure of the overall performance of a group of stocks
d. NASDAQ, NYSE, Fidelity
c. The interest rate on a savings account
26
What is compound interest?
a. Interest that is paid on the principal amount only
d. when interest build on interest
b. Interest that's paid by principal amount + any accumulated interest
c. Interest that is paid before the principal amount
27
What is the concept of a "grace period" on a student loan?
The minimum payment required on a credit card bill
The maximum amount of credit an individual can have on a credit card
no interest is charged while in school
When you have a 10 min passing period
28
What is the purpose of a "credit score"?
To provide a list of an individual's assets
reveal ones creditworthiness / determine likelihood of repaying debts
None of the above
To determine an individual's income
29
What is the best way to build wealth?
Investing in stocks and bonds
Starting your own business
Saving as much money as possible
A and B
30
What is the concept of "buy and hold" investing?
Buying stocks and selling them immediately for a quick profit
Buying stocks and holding them like a baby for a long time (symbolic)
Buying stocks and holding onto them for a long time, regardless
Buying stocks and selling them as soon as their prices start to decline
31
What is the concept of a "minimum payment" on a credit card bill?
The maximum amount of credit an individual can have on a credit card
The interest rate on a credit card
Minimum paymet
smallest amount of money a holder must pay each month to avoid late fees
32
What is a credit utilization ratio?
b. The interest rate on a credit card
a. Debit divided by credit
d. Amount of credit an individual has available/ amount they used
c. The amount of debt someone has
33
What is the concept of "diversifiable risk"?
b. Risk that cannot be reduced or eliminated through diversification
c. The risk associated with investing in stocks
a. Risk that can be reduced or eliminated by diversifying a portfolio
d. None of the above
34
What is a dividend?
b. The price at which a stock was originally purchased
d. A payment made by a corporation to its shareholders
a. Another word for a dead end
c. The total amount of money invested in a stock
35
What is the biggest obstacle to building wealth?
d. Mental Health
c. Overspending
b. Poor investment choices
a. Lack of income
36
What is the concept of "emotional investing"?
Making investment decisions based on emotions
buying/selling stocks often 2 take advantage of short-term market changes
Making investment decisions based on expert advice and market trends
Investing due to a breakup
37
What is the difference between a debit card and a credit card?
Debit Card: money you have. Credit Card: borrowed money
Credit Card: money you have. Debit Card: borrowed money
Debit is Debt
Both the same
38
What is the concept of "asset allocation" in investing?
distribution of investments across different asset classes
Investing only in stocks
None of the above
Investing only in bonds

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