Personal Finance Terminology Quiz
Test your knowledge with this quiz on personal finance terminology. Explore APR, dividends, ETFs, 401(k)s, ROE, FICO, and more.
#1
What does APR stand for in personal finance?
Annual Percentage Rate
Average Personal Revenue
Adjusted Payment Ratio
Asset Protection Rate
#2
What is the term used for a loan that is backed by collateral?
Unsecured loan
Mortgage
Credit card debt
Student loan
#3
What does '401(k)' refer to in the context of personal finance?
A type of credit card
A retirement savings plan sponsored by employers
A mortgage loan program
A tax preparation service
#4
What is the purpose of a 'budget' in personal finance?
To track income and expenses
To calculate interest rates
To manage insurance policies
To evaluate investment options
#5
What does 'IRA' stand for in finance?
Individual Retirement Account
Investment Risk Assessment
Interest Rate Adjustment
Income Reallocation Analysis
#6
What is the meaning of the term 'dividend' in finance?
A type of bond
An investment portfolio
A portion of a company's profits distributed to shareholders
A type of insurance policy
#7
What does 'ETF' stand for in finance?
Exchange-Traded Fund
Equity Trade Fraternity
Electronic Trading Facility
Economic Transfer Form
#8
What is the term for the process of spreading investments among different assets to reduce risk?
Diversification
Leveraging
Speculation
Consolidation
#9
What is the term for the process of borrowing money to invest and potentially increase returns?
Arbitrage
Hedging
Short selling
Leveraging
#10
What does 'FICO' represent in personal finance?
Financial Investment Corporation
Federal Insurance Corporation
Fair Isaac Corporation
Fiduciary Insurance Corporation
#11
What is the purpose of 'asset allocation' in personal finance?
To manage risk by investing in different asset classes
To minimize taxes on investments
To increase liquidity of investments
To calculate return on investment
#12
What does 'ROE' stand for in finance?
Return on Equity
Rate of Exchange
Risk of Error
Revenue over Expense
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