#1
Which financial statement reports a company's revenues and expenses over a specific period?
Income statement
ExplanationReports revenues and expenses over a period
#2
What is the purpose of a debit card?
To make electronic payments using funds in a bank account
ExplanationAllows electronic payments from bank funds
#3
What does the term 'liquidity' mean in finance?
The ease with which an asset can be converted into cash
ExplanationEase of converting asset to cash
#4
What is the purpose of a budget in personal finance?
To limit spending and control expenses
ExplanationControls spending and expenses
#5
What is the role of a credit score in financial transactions?
To determine the amount of interest charged on a loan
ExplanationDetermines loan interest rate
#6
What is the primary function of a balance sheet?
To show the financial position at a specific point in time
ExplanationShows financial position at a point in time
#7
What is the difference between a stock and a bond?
Stock represents ownership in a company, while a bond is a form of debt
ExplanationStock: ownership, Bond: debt
#8
What does ROI stand for in finance?
Return on Investment
ExplanationReturn on Investment acronym
#9
What is the purpose of a 401(k) retirement plan?
To save and invest money for retirement with tax advantages
ExplanationTax-advantaged retirement savings
#10
What does the term 'compound interest' mean?
Interest calculated on the initial amount plus any previously earned interest
ExplanationInterest on initial amount plus earned interest
#11
What is the role of a financial advisor?
To provide investment advice and financial planning services
ExplanationOffers investment advice and financial planning
#12
In accounting, what does the term 'amortization' refer to?
The allocation of the cost of an intangible asset over its useful life
ExplanationSpreading cost of intangible asset over time
#13
What is the role of the Federal Reserve in the United States?
To control inflation and manage monetary policy
ExplanationManages inflation and monetary policy
#14
What is the purpose of a SWOT analysis in financial planning?
To evaluate a company's strengths, weaknesses, opportunities, and threats
ExplanationAssesses company's SWOT factors
#15
What is the role of the Securities and Exchange Commission (SEC) in the financial market?
To regulate and oversee the securities industry and protect investors
ExplanationRegulates securities industry and protects investors