Pre Class Quiz (FME)

What is the purpose of a budget?

• To track income and expenses

• To save money for unexpected expenses

• To invest in the stock market

• To pay off debt faster

What is the difference between a stock and a bond?

• Stocks represent ownership in a company, while bonds represent a loan to a company

• Stocks represent a loan to a company, while bonds represent ownership in a company

• Both stocks and bonds represent ownership in a company

• Both stocks and bonds represent a loan to a company

What is the difference between a credit card and a debit card?

• Credit cards have higher interest rates than debit cards.

• Debit cards can only be used at ATMs, while credit cards can be used anywhere.

• Credit cards allow you to borrow money, while debit cards use funds directly from your account.

• Debit cards have annual fees, while credit cards do not.

Which of the following is a type of investment that involves pooling money with other investors to buy a diversified portfolio of assets?

• Stocks

• Bonds

• Mutual funds

• Real estate

What is the difference between a bear market and a bull market?

• A bear market is characterized by falling stock prices, while a bull market is characterized by rising stock prices.

• A bear market is characterized by rising interest rates, while a bull market is characterized by falling interest rates.

• A bear market is a market where only short selling is allowed, while a bull market is a market where only long positions are allowed.

• A bear market is a market where only institutional investors are allowed to trade, while a bull market is a market where only retail investors are allowed to trade.

What is the difference between a robo-advisor and a traditional financial advisor?

• Robo-advisors use artificial intelligence and algorithms to manage investments, while traditional financial advisors use a human touch.

• Robo-advisors have higher fees than traditional financial advisors.

• Robo-advisors offer more personalized advice than traditional financial advisors.

• Robo-advisors only invest in low-risk investments, while traditional financial advisors invest in high-risk investments.

Many celebrities, professional athletes, and entrepreneurs—people who can afford to live their desired lifestyles—have goals for their personal and professional achievements. Why do these successful people set goals?

• Goal-setting allows them to measure progress toward accomplishments or lifestyle changes they desire.

• Setting goals provides them with direction.

• Goal-setting gives them an opportunity to show off to others.

• Both “a” and “b.”

Which of the following financial products can help you lower your personal risk?

• Insurance

• Mutual funds

• Property Investment

• Bitcoin Investment

If I invest $100 per month starting at age 21, and that money earns a 7% annual return, how much will I have after 70 years?

• $1200x70

• $1200 x 1.07 x 70

• More than 1.5 million dollars

• More than 1 BILLION dollars

What are the various investment vehicles?

• Stocks

• Gold

• Bitcoin

• Property

• All the above