Personal Finance and Banking Quiz
Test your financial literacy with these 15 banking and personal finance questions covering savings, loans, investments, and more!
#1
What is the purpose of a savings account?
To borrow money from the bank
To earn interest on deposited funds
To invest in the stock market
To pay bills electronically
#2
What does APR stand for in banking?
Average Personal Rate
Annual Percentage Rate
Account Processing Ratio
Asset Performance Report
#3
What does FDIC stand for in banking?
Federal Department of Insurance and Credit
Federal Deposit Insurance Corporation
Financial Depository Investment Commission
Fiscal Duty and Investment Control
#4
What is compound interest?
Interest paid only on the initial deposit
Interest calculated on both the initial principal and the interest accrued
Interest paid at the end of the investment period
Interest rate determined by the market
#5
What is the purpose of a checking account?
To earn interest on deposited funds
To invest in stocks and bonds
To store money for long-term savings
To make day-to-day transactions
#6
What is the main purpose of a budget?
To limit spending
To maximize debt
To increase expenses
To track income
#7
What is the term for money taken out of your paycheck before taxes?
Net pay
Gross pay
Income tax
Pre-tax deduction
#8
What is the term for a loan that is backed by collateral?
Unsecured loan
Secured loan
Personal loan
Payday loan
#9
What is a stock market index?
A company's total assets divided by its total liabilities
A measure of the performance of a group of stocks
The rate at which banks lend to each other
The price of a stock on a particular day
#10
What is the 'rule of 72' used for in finance?
To estimate the time it takes for an investment to double in value
To calculate the monthly mortgage payment
To determine the interest rate on a loan
To project future inflation rates
#11
What is the purpose of diversification in investing?
To concentrate risk
To increase potential losses
To reduce risk
To invest in a single asset
#12
What is a Roth IRA?
A retirement account where contributions are tax-deductible
A retirement account where contributions are made after-tax
A savings account with a fixed interest rate
An investment in a foreign currency
#13
What is the term for a financial instrument representing ownership in a company?
Bond
Certificate of deposit
Stock
Mutual fund
#14
What does ROI stand for in finance?
Return on Investment
Rate of Interest
Revenue Over Inflation
Risk of Investment
#15
What is the purpose of asset allocation in investment?
To concentrate risk
To increase potential losses
To spread investments across different asset classes
To invest in a single asset
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