Financial Literacy and Management Quiz

Challenge your knowledge on credit, investments, retirement plans, and more. Take this quiz to gauge your financial literacy and management skills!

Practice Learn Test

Which of the following is not a factor that affects credit score?

Payment history

Length of credit history

Education level

New credit inquiries

What is the primary purpose of a budget?

To track spending

To limit spending

To save money

All of the above

Which of the following is not a type of insurance?

Life insurance

Health insurance

Debt insurance

Property insurance

What is a mutual fund?

A type of bank account

A type of investment

A type of insurance

A type of loan

Which of the following is a type of investment risk?

Inflation risk

Market risk

Interest rate risk

All of the above

What is the formula to calculate compound interest?

A = P(1 + r)^n

A = P(1 - r)^n

A = P(1 + r/n)^nt

A = P(1 - r/n)^nt

What is the difference between a stock and a bond?

Stocks are more risky than bonds

Bonds are more risky than stocks

Stocks represent ownership, while bonds represent debt

Stocks represent debt, while bonds represent ownership

What is the purpose of diversification in investing?

To limit the number of investments

To increase the number of investments

To decrease the risk of loss

To increase the risk of loss

What is the primary purpose of a 401(k) retirement plan?

To provide health insurance

To provide life insurance

To provide retirement savings

To provide disability insurance

#10

What is a Roth IRA?

A type of retirement account

A type of insurance

A type of loan

A type of investment

#11

What is the primary purpose of a will?

To manage your assets after death

To manage your assets while alive

To manage your assets before death

To manage your debts after death

#12

What is the primary purpose of a 457 retirement plan?