Financial Literacy Quiz

What is the investment that has the highest risk yet the highest potential for returns?

• Stocks

• Savings Account

• Checking account

• Bonds

This is purchased to protect someone from risks.

• Insurance

• Stocks and Bonds

• Installment credit

• Bubble wrap

A non-profit financial institution that holds deposits and loans out money is known as

• Payday Lender

• Title Pawn Lender

• Bank

• Credit Union

If you were to make a financial investment, what would make it grow fastest?

• Dividends

• Simple interest

• Compound interest

• Real Estate

What are returns paid on a stock called?

• Interest

• Dividends

• Checks

• Balances

What type of insurance would you buy to make sure your family is financially stable if you were to die?

• Auto insurance

• Disability insurance

• Life insurance

• Umbrella insurance

What do banks pay to people who deposit money with them?

• Interest Charged

• Dividends

• Stocks

• Interest Earned

What is an investment?

• Spending money on luxury items.

• Putting money into a savings account for future use.

• Allocating money with the expectation of generating an income or profit.

• Borrowing money to buy assets.

What is investing?

• Spending all your money on toys

• Putting money in a piggy bank

• Using money to make more money

• Borrowing money from a friend

What is a risk management technique that mixes a wide variety of investments within an investment portfolio?

• Commodities

• Investment

• Diversification

• Stock acquisition