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Fin Lit Quiz Challenge - High School Flashcards | StudBud
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Fin Lit Quiz Challenge - High School
Fin Lit Quiz Challenge - High School
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A #finlit quiz for #highschool students
Flashcards
86 cards
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Practice quiz
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Questions
86
Answers
1
Two types of bank deposit accounts are:
Insurance and credit
Saving and checking
Loans and credit cards
Stocks and bonds
2
When interest is paid on previous interest, good if saving, bad if borrowing, is called:
Default
Diversifying
Net Income
Compounding
3
As an individual, what would count as a liability?
Checking Account
Auto loan
Saving account
None of the above
4
Retirement income paid by the US Federal Government is called?
401(k)
Social Security
Interest
IRA
5
Which schedule of compounding is
least
favorable to a saver?
Daily
Monthly
Quarterly
Annually
6
A mortgage is a loan to purchase a:
Stock
Home
Car
Mutual Fund
7
If your bank charges you $2 to use the ATM and you use it 2x a week, your annual charges are?
$104
$152
$208
$52
8
When you earn or receive money, you should “pay yourself first”. What does this mean?
Buy yourself a treat before other spending.
Spend first and save what’s left over.
Put some $ in saving before spending.
None of the Above
9
This is the word for income after all taxes and other deductions have been taken out:
Taxable Income
Net Income
Gross Income
All of the Above.
10
Federal income taxes are:
Only paid by property owners
Subtracted each pay cycle for workers
All of the Above
Not paid by retired persons
11
Required payments to Federal, state or local governments are called:
Securities
Dividends
Taxes
All of the Above
12
If you own stock in a company, you receive your earnings as:
Interest
Dividends
Taxes
Annuity
13
Which schedule of compounding is
most
favorable to a lender?
Quarterly
Annually
Monthly
Daily
14
As a stockholder or bondholder, the value of your investment:
Never changes
Always increases
Could either increase or decrease
Always decreases
15
What is a credit report?
A credit line with a bank
A list of assets and liabilities
A monthly credit card bill
A loan and payment history
16
When you invest in a company’s stock,
All of the Above.
You lend your money to the company.
You become a customer of the company.
You become one of the owners.
17
An IRA is an
Investment Retiree Account
Individual Retirement Account
Individual Real Assets
Individual Readiness Assessment
18
When you invest in a bond, you receive your earnings as:
Taxes
Dividends
Annuity
Interest
19
One of the quickest ways to reduce your credit score is to:
Pay Bills Early
Add to your Savings
Pay By Check
Pay Bills Late
20
What is
not
a way to improve your credit score:
Pay your bills on time.
None of the above
Always pay in cash, never use a credit card.
Maintain older credit cards.
21
Investments that pool money from many and invest in stocks, bonds or other investments are:
Bank Savings Accounts
Mutual Funds
Corporate Bonds
Margin Calls
22
Something valuable that belongs to you, for example, a bank account:
Expense
Liability
Asset
None of the Above
23
This type of tax is taken out of a paycheck to pay for things like national parks and the Army.
State Tax
Excise Tax
City Tax
Federal Tax
24
Your credit score is important because:
It can affect loan interest rates.
It can impact your ability to make major purchases.
It can impact getting credit.
All of the Above
25
If you earn 4% on your savings and inflation is 2%, the purchasing power of your savings...
Increases
Stays the same
Decreases
26
Which of the following financial instruments is
not
associated with borrowing?
Credit Card
Auto Loan
Debit Card
Mortgage
27
Which of the following would be considered an expense?
Dining Out
All of the Above
Bus Pass
Cell Phone Bill
28
When you pay for something using a _____, the money is immediately taken from your account.
None of the Above
Credit Card
Debit Card
All of the Above
29
Which of the following would be considered personal income?
Oil Bill
Child Care Payments
Bank Fees
None of the Above
30
A good place to open your first checking account would be with:
A piggy bank
The Federal Reserve Bank
A credit card company
A local bank
31
When interest compounds…
Interest gets added to the principal & further accumulates.
Interest earned is tax exempt.
All of the Above
Interest earned is automatically paid in cash.
32
Amy gets a new job and moves from Ohio to Maine. What type of taxes will likely change for her?
Federal Income Tax
Social Security & State Taxes
Medicare Contribution
Property & State Taxes
33
Key features to know about a credit card include:
All of the Above
Annual Fee
Rewards or cash back
Annual Percentage Rate
34
As an individual, what would count as an asset?
Your credit card account
All of the Above
Your cable TV account
Your bank account
35
In terms of “wants” and “needs”, what is a “want”?
None of the Above
Nutritious Food
School Books
Cable TV
36
Marcus gets a new bank ATM card. The next day, he gets a PIN for the card. He should now...
Write the PIN on the back of the card.
Send out a text with his PIN.
Tell his closest friends his PIN.
Memorize his PIN.
37
Municipal bonds are issued by:
All of the Above
Individuals
Companies
Local Governments
38
If you use a credit card, you should:
Ignore the bill.
Pay the full balance each month.
Charge to your full credit line.
Pay only the minimum balance.
39
You invest $1,000 and earn 5% annual interest. At the end of the year how much will you have?
$1,005
$1,050
$1,365
$1,000
40
Gross income is most often
Same as net income.
Less than net income.
More than net income.
Same as your take home pay
41
Which of these financial assets is the most liquid:
Retirement Account
Corporate Bonds
Stocks
Savings Account
42
For most people, the largest portion of their income comes from:
Interest from stocks and bonds.
Rents paid them from property.
Credit card fees and debt.
Wages and salaries from jobs.
43
The price of a $13,000 car increases by 10%. How much will the car now cost?
$14,300
$13,130
$13,300
$1,300
44
To get money into your bank account without delay on a specific date, you should request:
None of the Above
Early Decision
Split Decision
Direct Deposit
45
A teen worked 10 hours at $11 per hour last week. How much is their paycheck for the week?
$110 + a "youth bonus"
$110 - taxes
$110
$11
46
In terms of “wants” and “needs”, what is a “need”?
4-G Mobile Phone
Winter Coat
None of the Above
Video Game System
47
In your budget, this is an example of a fixed cost:
All of the Above
Rent
Student Loan Payment
Home Mortgage
48
The
first
thing to do before you write a check is:
Make sure there is enough money in the account
Sign the check
Record the check details in the checkbook register
Write the date on the check
49
Which is a method to afford a college education?
Look for lower priced choices
Apply for financial aid
All of the Above
Seek out scholarships
50
When would you be most likely to be asked for your Social Security number?
Applying for a loan
Applying for Social Security benefits.
All of the Above
Applying for a job
51
Two parts of a loan are:
Savings & Checking
Stocks & Bonds
Profits & Earnings
Principal & Interest
52
Which of these is the best investment of time and talent for a young person’s future:
Education
Posting on Social Media
Part Time Job
Socializing
53
When you pay for something using a _____, you are really taking out a loan to pay it later.
All of the Above
Debit Card
Credit Card
None of the Above
54
Which of the following does a bank allow you to use for a set period of time?
A budget
None of the Above
Credit and loans
The Stock Market
55
Which factor(s) influence how much your savings or investment account can grow?
How much money you contribute
All of the Above
How early you start
The interest rate earned
56
A pair of $60 shoes is on sale for 20% off. What is the sale price (not including sales tax)?
$12
$48
$54
$40
57
Income that you don’t spend now and put aside for the future is called:
Dollar Cost Averaging
Savings
Zero Coupon Bonds
All of the Above
58
Extra money you earn in a saving account or have to pay when you borrow is called:
None of the Above
Budget
Interest
Stocks
59
This term means the money you get from a paid job, an allowance or cash gifts:
Taxes
Expenses
Profits
Income
60
Which of the following is a retirement plan?
401(k) Plan
HBO Plan
529 Plan
HMO Plan
61
The “Rule of 72” is a formula that allows you to calculate:
When to retire
How long it will take for your savings to double.
How much tax to pay on your income.
The risk level of your investments
62
Deposits in these are guaranteed by the Federal Government up to $250,000 per depositor:
Corporate Bonds
Stock/Brokerage Accounts
Mutual Funds
Bank Savings Accounts
63
Which of these is needed to open a bank account?
$100 cash
Social Security Number
All of the Above
Employment
64
Giving up one thing to get something else is called a:
Variable Annuity
Fixed Cost
Trade off
Variable Cost
65
In your budget, this is an example of a variable cost:
Rent
Car Loan Payment
Clothing
Child Support
66
Which animal is associated with a stock market where prices go
down
for a longer time period?
Beaver
Sloth
Bull
Bear
67
This is a secret code used to access your bank account:
BIN (Bank Identification Number)
SSN (Social Security Number)
PIN (Personal Identification Number)
None of the Above
68
If a mutual fund loses 10% of its’ value, who supports the loss?
Mutual funds don’t lose money
The mutual fund company
The Federal Government
You, as the owner of the shares of the mutual fund
69
When a financial asset can easily be converted into cash, it is said to be:
Solid
Liquid
Gas
None of the Above
70
In your budget, this is an example of a fixed cost:
Rent
Entertainment
Hair Cuts
Groceries
71
Everyone wants a specific thing, but it's limited and there's not enough to satisfy everyone =
Stocks
Supply
Scarcity
Security
72
A budget is used to balance these two things:
Income & Expenses
Education & Employment
Hopes & Dreams
Cash & Credit
73
In your budget, this is an example of a variable cost:
All of the Above
Groceries
Clothing
Gasoline for your car
74
Which of the following is
not
an asset:
Your Car
Your Student Loan
Your Home
Your Savings
75
A plan you make to help you balance your income and spending is called a:
Budget
Widget
None of the Above
Schedule
76
Which animal is associated with a stock market where prices go
up
for an extended time period?
Bull
Moose
Beaver
Bear
77
If you do not have enough income to cover your expenses, you should:
Decrease income, increase expenses.
Make no changes.
Increase income, decrease expenses.
78
The Dow Jones Industrial Average is associated with:
Stocks
Bonds
None of the Above
Savings Accounts
79
Steve wants to get car insurance. What factors are likely to increase his insurance costs?
He was responsible for 2 accidents last year.
None of the above
Both Answer 1 & 2
He bought a new, more expensive car.
80
Jae earns $30,000 per year w/ a tax rate of 15%. How much is taken from his paycheck for taxes?
Exactly $4,500
Less than $4,500
More than $4,500
81
Money you earn by working, saving or investing is called:
Liability
None of the Above
Debt
Income
82
When you invest in a company bond,
None of the Above.
You lend your money to the company.
You become a customer of the company.
You become one of the owners.
83
Deposits accounts at which financial institutions are typically insured?
All of the Above
Banks
Thrifts (Savings Institutions)
Credit unions
84
A lower credit score usually results in a ______________ interest rate.
None of the Above
Zero
Higher
Lower
85
If inflation is greater than the interest on your savings account, then
You have gained purchasing power
You have lost purchasing power
None of the above
Your purchasing power is unchanged
86
_______ works two ways: you earn it on your savings but you pay it on your loans.
Social Security
Debt
Interest
Principal
