Finance Terminology Quiz

What does the term "401(k)" refer to?

• A tax form for reporting personal income

• A savings plan for retirement

• A type of credit card

• A report that tells you how well you repay your loans

What is an "APR" in the context of finance?

• Annual Percentage Yield

• A process where accounts are rechecked for accuracy

• Annual Percentage Rate for interest paid on a card

• The final arranging of details for the sale of a house

What is the purpose of an "Audit"?

• A written order directing a bank to take money from your account

• A savings plan for retirement

• A transaction that adds to an account

• A process where accounts are rechecked for accuracy and completeness

What does "FICA" stand for?

• Federal Insurance Contribution Act

• Federal Internal Credit Association

• Financial Investment Company Act

• Fiscal Integrity and Compliance Act

What is a "Debit Card" used for?

• To add a signature to a loan made by someone else

• To take money from an account

• To pay for a purchase with money electronically withdrawn from their account

• To give money to charity

What is the meaning of "Co-sign"?

• To write a check

• To add your signature to a loan made by someone else, promising that you will repay if the other person does not

• To hire workers

• To repay a loan as promised

What is the definition of 'Fixed Income'?

• A) A percent of your salary paid after you retire

• B) Income that can't be increased

• C) Taxes paid to the town or city based on the value of your house and land

• D) The value of your assets minus your debts

What does 'Gross' refer to in terms of payroll?

• A) The least amount you may pay each month on a credit card charge

• B) Total pay before payroll taxes

• C) The cost of keeping something in working order

• D) A book or chart that lists financial transactions

What is an 'Incentive'?

• A) A reward or something positive that is generally used to encourage someone to do something

• B) Money paid by the bank for the use of your money

• C) A written agreement to repay borrowed money

• D) The initial amount of a loan before interest charges

What is 'Interest' in the context of banking?

• A) The value of your assets minus your debts

• B) Money paid by the bank for the use of your money, or paid by you for the use of bank money

• C) A special loan that generally refers to money borrowed to buy a house

• D) A book or chart that lists financial transactions