General Financial Literacy

Question 1

A ___________________stock give you back dividends and dividend priority, but no voting rights.

Accepted Answer

preferred

Question 2

The transfer of risk from an individual or firm by a contract to a company is called

Accepted Answer

Insurance

Question 3

A _______________ market is a market that is trending upwards in value over time.

Accepted Answer

Bull

Question 4

50/100/50 means that

Accepted Answer

50k per person medical/100k per accident/50k property damage

Question 5

A privately owned firm/business decides to sell shares to the public for the first time this is

Accepted Answer

Initial Public Offering

Question 6

___________________ is the ability to buy now and pay later.

Accepted Answer

Credit

Question 7

owning a home for most of US population has turned out to be a good idea - the home is an asset

Accepted Answer

True, True -but it also depends

Question 8

A stock ______ is when the company has to keep your ownership % the same & issues more shares

Accepted Answer

split

Question 9

The Federal Reserve Bank - our central bank - sets all banks & credit unions prime lending rate

Accepted Answer

False

Question 10

The five c's of credit are

Accepted Answer

capital, character, collateral, conditions, capacity

Question 11

______________ is a type of insurance where you retain a higher risk - you transfer less risk

Accepted Answer

high deductibles

Question 12

The DJIA or the Dow Jones Industrial Average is a leading index of 60 large US stocks

Accepted Answer

False

Question 13

A credit card is best known as _______________ credit

Accepted Answer

Open or Revolving

Question 14

In 2005 Congress revised the bankruptcy laws in the US.

Accepted Answer

True, still do chapter 7 after debt counseling & means test

Question 15

A very important concept in investing a way to spread or minimize your risk

Accepted Answer

diversification

Question 16

A ________________ is a payment made a firm to stock holders

Accepted Answer

dividend

Question 17

The risk/return principle states the lower the risk the lower the return & higher risk

Accepted Answer

the higher the potential return

Question 18

Which five c's of credit -you total up your debt service & divide it by your income to get a %

Accepted Answer

capacity

Question 19

A ______________ is the person that receives the proceeds of a life insurance policy.

Accepted Answer

beneficiary

Question 20

A ____________ period is the amount of time you can pay insurance late without being cancelled

Accepted Answer

grace

Question 21

A technical _______________ market is a market that is down 20% from it highs & trending down

Accepted Answer

Bear

Question 22

An APR is the

Accepted Answer

the total finance charges expressed as an annual rate

Question 23

This is a type of life insurance that is good for a set amount of time, and then it lapses

Accepted Answer

term life insurance

Question 24

A 30 year loan used for real estate and buildings

Accepted Answer

Mortgage or home loan

Question 25

A way to diversify your investments by pooling investor's monies into a fund passive or active

Accepted Answer

mutual fund

Question 26

A _____________ is a fee at the time of service

Accepted Answer

co-payment

Question 27

The rule of 72, compounding interest, and or the time value of money means

Accepted Answer

there is a time aspect to money and its value

Question 28

Financial Literacy education has positive outcomes for those that receive & act on it.

Accepted Answer

True - studies show lower credit deliquentcies & more saving, True

Question 29

Most stocks & bonds are traded in Chicago, while commodities & precious metals trade in NYC, NY

Accepted Answer

False, False, the opposite is true switch Chicago & NYC

Question 30

It is much better to start investing while young with small amounts of $ than to wait

Accepted Answer

True - because of the rule of 72 and compounding interest, True

Question 31

A loan for a fixed amount, at a fixed rate, for a fixed period of time

Accepted Answer

Installment

General Financial Literacy

Questions 31

General Financial Literacy

Questions 31