Financial Literacy Proficiency Exam Review #3 3rd ed.

Diversification reduces your _____ by using a mix of investment types in your portfolio.

• Retirement funds

• Income

• risk

• mutual funds

Investing your money earns you more money because of ---

• compound growth

• short-term savings

• checking accounts

• mortgage payments

Certificates of deposit and money market accounts are both examples of investments with ___ risk and ___ return.

• high; high

• high; low

• low; high

• low; low

The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) keep your money in the bank insured up to ___ per account.

• $250

• $250,000

• $2,500

• $25,000

If you see "pending" on an account charge, that means . . .

• The payment was declined

• . It hasn't been fully processed yet

• You need to make a deposit before it is paid

• It is suspected of being a fraudulent charge

A debit card, ATM access, payroll direct deposit, and checks are basic features of ___.

• A savings account

• A money market account

• Online banking

• A checking account

Verifying your bank's online account statements for accuracy is called ___.

• Debit card fraud

• Reconciling your account

• Adjusting your budget

• Direct deposit

Liquidity is . . .

• A great way to find a financial service that's right for you

• When you deposit silver or gold and they liquify it for you

• How money flows from bank to bank

• . How quickly and easily you can access your money

This type of home insurance covers the structure of your home.

• Homeowner's insurance

• Personal property coverage

• Liability coverage

• Dwelling insurance

Life insurance guarantees your loved ones get a certain amount of money when you ___.

• Turn 18

• Get injured

• Pass away

• Move out of the house