Financial Literacy Quiz

A Roth IRA is:

• A pre tax, retirement account allowing taxed withdrawls

• A type of insurance policy for retirement.
• A post tax, tax-advantaged retirement account allowing tax-free withdrawals.

• A government bond that guarantees returns.

A Traditional IRA is:

• A Post-Tax, Investment Based, Retirement Account

• A Pre-Tax, Investment Based, Retirement Account

• A form of Whole Life Insurance

• A Non-Tax, Investment Based Retirement Account

A Traditional 401k is:

• A government-funded pension plan.
• A retirement savings plan allowing pre-tax contributions.
• A savings account with tax-free withdrawals.
• A retirement savings plan allowing post-tax contributions.

A Roth 401k is:

• A tax-deferred retirement account with pre-tax contributions only.
• A savings account with no tax benefits for retirement.
• A type of investment account that requires annual taxes on earnings.
• A retirement savings plan allowing post-tax contributions with tax-free growth and withdrawals.

A Beneficiary is:

• A person who manages the assets of others.
• An individual who is responsible for paying debts.
• An individual who receives the cash value of someones life insurance policy.

• An individual or entity entitled to receive benefits or assets from someones life insurance policy

The term Roth means:

• A type of investment that guarantees fixed returns.
• A government bond with tax benefits.
• A type of retirement account allowing post tax, tax-free growth and withdrawals.

• A type of retirement account allowing pre tax contributions and taxed growth and withdrawals.

Life Insurance is:

• a legal agreement for property ownership transfer.
• a contract that provides financial protection to beneficiaries upon the insured's death.
• a policy that covers medical expenses for the insured.
• a type of investment that guarantees returns over time.

IRA stands for:

• International Retirement Account

• Individual Retirement Account Fund
• Individual Revenue Account
• Individual Retirement Account

What is a death benefit?

• A death benefit is a loan taken against the insured's assets.
• A death benefit is a tax deduction for funeral expenses.
• A death benefit is a type of life insurance policy.
• A death benefit is a payment made to beneficiaries upon the death of the insured.

What is the Cash Value of a life insurance policy?

• The cash value is the savings component of a permanent life insurance policy that can be accessed by the policyholder.
• The cash value is the death benefit of the policy.
• The cash value is the total amount paid in premiums.
• The cash value is a one-time payment made at policy inception.