6.16: Financial Literacy Post Test

Front

What is the primary function of the Securities & Exchange Commission (SEC)?

Back

To regulate and oversee the stock market

Front

Which of the following best describes the difference between saving and investing? Saving is for long-term growth, investing is for emergencies, Saving is putting money aside with little risk, investing involves risk for potential higher returns, Saving always loses money, investing always gains money, Saving is only for retirement, investing is for daily expenses

Back

Saving is putting money aside with little risk, investing involves risk for potential higher returns

Front

Which organization insures deposits in U.S. banks up to a certain limit?

Back

Federal Deposit Insurance Corporation (FDIC)

Front

A person who prefers low risk and stable returns is most likely to choose which type of investing?

Back

Conservative

Front

What is a dividend?

Back

A portion of a company's profits paid to shareholders.

Front

If you want to buy and sell stocks, which professional would you most likely contact?

Back

Stock broker

Front

Which of the following best explains the purpose of a will in estate planning? To pay off debts, To outline how a person's assets will be distributed after death, To avoid paying taxes, To insure property

Back

To outline how a person's assets will be distributed after death

Front

What is the main difference between a savings account and a money market account?

Back

Money market accounts usually offer higher interest rates and may require higher minimum balances.

Front

Which stock market index is made up of 30 large, publicly owned companies in the U.S.?

Back

Dow Jones Industrial Average

Front

What is the main role of the Federal Reserve Bank?

Back

To manage the nation’s monetary policy and control interest rates