Financial Institutions and Savings Vehicles Quiz
Test your knowledge on financial institutions, savings accounts, investment vehicles, and retirement plans. Take the quiz now!
#1
Which of the following is considered a financial institution?
Coffee shop
Credit union
Bookstore
Bakery
#2
What is the primary purpose of a savings account?
To invest in stocks
To earn interest on deposited funds
To pay bills
To purchase real estate
#3
Which of the following is NOT a type of financial institution?
Bank
Insurance company
Library
Credit union
#4
What is a Certificate of Deposit (CD)?
A type of government bond
A long-term loan
A savings vehicle with a fixed interest rate and maturity date
A credit card
#5
What is the main function of an investment bank?
Provide loans to individuals
Offer checking and savings accounts
Facilitate buying and selling of securities
Sell groceries and household items
#6
Which of the following is a characteristic of a mutual fund?
Invests only in one type of asset
Managed by a single individual
Pooled funds from multiple investors to invest in various assets
Guaranteed return on investment
#7
What is the purpose of a 401(k) retirement account?
To provide health insurance
To invest in real estate
To save for retirement with tax advantages
To pay off student loans
#8
Which of the following is a characteristic of a money market account?
High liquidity
Fixed interest rate
Long maturity period
No risk of loss
#9
Which of the following is a feature of a traditional Individual Retirement Account (IRA)?
Contributions are tax-deductible
No penalties for early withdrawals
Contributions can exceed annual income
Contributions are tax-free
#10
What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
To regulate stock markets
To provide insurance for bank deposits
To issue government bonds
To oversee credit unions
#11
Which of the following is a feature of a money market fund?
High liquidity
Fixed maturity date
Guaranteed high returns
High-risk investment
#12
What is the purpose of a 529 plan?
To save for retirement
To pay for education expenses
To invest in real estate
To provide health insurance
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