#1
Which of the following is a type of credit card?
Visa
ExplanationVisa is a type of credit card.
#2
What does APR stand for in finance?
Annual Percentage Rate
ExplanationAPR stands for Annual Percentage Rate in finance.
#3
What is the purpose of a credit report?
To assess creditworthiness
ExplanationThe purpose of a credit report is to assess creditworthiness.
#4
What does FDIC stand for in the context of banking?
Federal Deposit Insurance Corporation
ExplanationFDIC stands for Federal Deposit Insurance Corporation in the context of banking.
#5
What is the purpose of a mutual fund?
To invest in a diversified portfolio of securities
ExplanationThe purpose of a mutual fund is to invest in a diversified portfolio of securities.
#6
What does ROI stand for in financial terms?
Return on Investment
ExplanationROI stands for Return on Investment in financial terms.
#7
What is the purpose of a 401(k) plan?
To provide retirement savings
ExplanationA 401(k) plan is designed to provide retirement savings.
#8
Which of the following is NOT a factor affecting credit score?
Annual income
ExplanationAnnual income is not a factor affecting credit score.
#9
What is the purpose of a budget?
To track income and expenses
ExplanationThe purpose of a budget is to track income and expenses.
#10
What is the key difference between a stock and a bond?
Stocks represent ownership, while bonds represent debt
ExplanationStocks represent ownership, while bonds represent debt.
#11
What is the primary purpose of insurance?
To transfer risk
ExplanationThe primary purpose of insurance is to transfer risk.
#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
ExplanationThe difference is that Traditional IRA contributions are tax-deductible, while Roth IRA contributions are not.
#13
What is compound interest?
Interest calculated on the initial principal and also on the accumulated interest from previous periods
ExplanationCompound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods.
#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
ExplanationThe 'Rule of 72' is used to estimate how long it will take to double an investment at a given interest rate.
#15
What is the purpose of a stock market index?
To track changes in the overall stock market
ExplanationThe purpose of a stock market index is to track changes in the overall stock market.
#16
What is the primary goal of retirement planning?
To achieve financial independence
ExplanationThe primary goal of retirement planning is to achieve financial independence.
#17
What is the purpose of a financial advisor?
To provide guidance on financial matters
ExplanationThe purpose of a financial advisor is to provide guidance on financial matters.