#1
Which of the following is considered a liquid asset?
Real Estate
Stocks
Savings Account
Collectibles
#2
What does APR stand for in banking?
Annual Percentage Rate
Average Personal Revenue
Adjusted Price Ratio
Annual Profit Return
#3
What is the purpose of a budget in personal finance?
To track historical spending
To limit spending and allocate funds effectively
To maximize credit card rewards
To invest in high-risk assets
#4
Which of the following is a characteristic of a fixed-rate mortgage?
Interest rate remains constant throughout the loan term
Interest rate changes periodically based on market conditions
Interest rate is initially low and increases over time
No interest is charged on the loan
#5
What is the purpose of a FICO score?
To assess the risk of default on loans
To determine your annual income
To evaluate your spending habits
To calculate your net worth
#6
Which of the following is a characteristic of a traditional savings account?
Higher interest rates compared to other savings options
Limited withdrawals per month
No risk of losing principal
Requires a high minimum balance
#7
What is the purpose of a credit score?
To determine your eligibility for loans and credit cards
To track your monthly expenses
To calculate your net worth
To evaluate your investment portfolio
#8
Which type of account typically offers the highest interest rate?
Checking Account
Savings Account
Certificate of Deposit (CD)
Money Market Account
#9
What is the purpose of a routing number on a check?
To identify the bank
To identify the account holder
To indicate the check number
To authorize the transaction
#10
What does IRA stand for in the context of retirement savings?
Individual Retirement Account
Investment Return Assessment
Interest Rate Adjustment
Income Revenue Analysis
#11
What is the primary function of the FDIC (Federal Deposit Insurance Corporation)?
To regulate credit card companies
To insure deposits in banks up to a certain amount
To set interest rates on mortgages
To manage retirement accounts
#12
What is the purpose of a money market account?
To provide long-term growth potential
To offer easy access to funds with a checkbook and debit card
To invest primarily in stocks
To provide higher interest rates than traditional savings accounts
#13
What is the purpose of diversification in investment?
To concentrate all investment funds in a single asset
To minimize risk by spreading investments across various assets
To maximize potential returns by investing in high-risk assets
To limit investment options to a specific sector
#14
What is the primary function of the Federal Reserve in the United States?
To regulate the stock market
To set fiscal policy
To control inflation and manage the money supply
To oversee international trade agreements
#15
What is the significance of compound interest in investing?
It is the interest earned on the initial principal only
It allows for exponential growth of investment over time
It is applicable only to short-term investments
It decreases the overall return on investment
#16
What is the primary purpose of an emergency fund?
To invest in high-risk assets
To cover unexpected expenses and financial emergencies
To pay off long-term debt
To provide income during retirement
#17
What is the role of the Securities and Exchange Commission (SEC) in personal finance?
To regulate financial markets and protect investors
To oversee the issuance of currency
To manage the national debt
To set monetary policy