#1
Which of the following is considered a financial transaction?
Buying groceries
Going for a morning jog
Watching a movie
Depositing money in a savings account
#2
What is the primary purpose of saving money?
To spend lavishly
To accumulate wealth for future needs
To donate to charity
To pay off debts
#3
What is the purpose of a budget?
To maximize spending
To track income and expenses
To incur debt
To ignore financial planning
#4
Which of the following is NOT a type of financial institution?
Bank
Credit Union
Stock Exchange
Insurance Company
#5
What is the term for the amount of money an individual or business has left over after paying expenses?
#6
What is the term for a financial instrument that represents ownership in a company?
Bond
Mutual Fund
Stock
Certificate of Deposit
#7
What is the term for the amount of money charged by a lender for the use of its money?
Interest
Profit
Inflation
Salary
#8
What is an example of a long-term financial goal?
Buying a new smartphone
Purchasing a house
Taking a vacation
Buying daily groceries
#9
What is the term for the process of converting assets into cash?
Liquidity
Investment
Diversification
Budgeting
#10
What is the formula to calculate simple interest?
Principal * Rate * Time
Principal * Rate / Time
Principal / Rate * Time
Principal + Rate + Time
#11
What does the acronym IRA stand for in finance?
Individual Retirement Account
Investment Risk Assessment
Interest Rate Adjustment
Income Revenue Analysis
#12
What is the term for the process of spreading investments across various assets to reduce risk?
Leveraging
Concentration
Diversification
Speculation
#13
Which of the following is NOT a factor to consider when making a savings decision?
Interest rates
Inflation
Color of the bank's logo
Risk level
#14
What is the term for a situation where inflation outpaces interest rates?
Deflation
Hyperinflation
Stagflation
Recession
#15
Which of the following is a characteristic of a diversified investment portfolio?
High risk and high return
Low risk and low return
High risk and low return
Low risk and high return