#1
Which of the following is a type of credit card?
#2
What does APR stand for in finance?
Average Payment Rate
Annual Percentage Rate
Adjusted Payment Ratio
Accumulated Profit Return
#3
What is the purpose of a credit report?
To track personal expenses
To monitor credit card transactions
To assess creditworthiness
To calculate income tax
#4
What does FDIC stand for in the context of banking?
Federal Deposit Insurance Corporation
Financial Development and Investment Corporation
Federal Debt and Income Control
Financial Data and Information Center
#5
What is the purpose of a mutual fund?
To provide insurance coverage
To invest in a diversified portfolio of securities
To issue loans to individuals
To offer retirement benefits
#6
What does ROI stand for in financial terms?
Rate of Inflation
Return on Investment
Rate of Interest
Revenue Over Internet
#7
What is the purpose of a 401(k) plan?
To save for college tuition
To fund a vacation
To provide retirement savings
To pay off credit card debt
#8
Which of the following is NOT a factor affecting credit score?
Payment history
Length of credit history
Annual income
Types of credit used
#9
What is the purpose of a budget?
To increase spending
To decrease savings
To track income and expenses
To ignore financial planning
#10
What is the key difference between a stock and a bond?
Stocks represent ownership, while bonds represent debt
Stocks guarantee fixed returns, while bonds have variable returns
Stocks are issued by governments, while bonds are issued by corporations
Stocks have higher liquidity than bonds
#11
What is the primary purpose of insurance?
To accumulate wealth
To transfer risk
To speculate on future market trends
To avoid taxes
#12
What is the difference between a traditional IRA and a Roth IRA?
Traditional IRA contributions are tax-deductible, while Roth IRA contributions are not
Roth IRA contributions are tax-deductible, while Traditional IRA contributions are not
Both traditional and Roth IRA contributions are tax-deductible
Neither traditional nor Roth IRA contributions are tax-deductible
#13
What is compound interest?
Interest paid on the original principal amount
Interest calculated only once per year
Interest calculated on the initial principal and also on the accumulated interest from previous periods
Interest paid on the total amount borrowed
#14
What is the 'Rule of 72' used for in finance?
To estimate how long it will take to double an investment at a given interest rate
To calculate mortgage payments
To determine retirement age
To assess credit risk
#15
What is the purpose of a stock market index?
To track changes in the overall stock market
To predict individual stock prices
To regulate stock market activities
To calculate dividend yields
#16
What is the primary goal of retirement planning?
To maximize debt
To minimize savings
To achieve financial independence
To increase taxes
#17
What is the purpose of a financial advisor?
To encourage reckless spending
To provide guidance on financial matters
To increase debt
To promote risky investments