Finance Quiz

What is NOT true of stocks?

• It is partial ownership of a company

• Buying stock is riskier than buying bonds

• There is more chance for money to grow over time

• Your money will only increase over time with stocks

What is the difference between a savings and a checking account?

• savings accounts give you ready access to money as much as you'd like

• checking accounts give you ready access to money as much as you'd like

• savings accounts are safe, checking accounts are risky

• checking accounts are safe, savings accounts are risky

Where is the BEST place to keep your emergency fund? (There is a right answer)

• Checking account

• Savings account

• Stocks

• CD

Where is the BEST place to put money for retirement? (There is a right answer)

• Checking account

• Savings account

• Stocks/Bonds

• None of the above

Which of these is a retirement account?

• IRA

• Roth IRA

• 401K

• All are retirement accounts

What is the difference between a Roth IRA and an IRA

• Roth IRA uses POST tax money

• IRA uses POST tax money

What is a mutual fund?

• Ownership in many companies

• investment where stocks, bonds, etc. are sold together as a unit

• A retirement account

• None of the above

What is true about specie?

• The USA uses specie money

• A Euro would be considered specie

• Gold or silver is what gives it worth

• None of the above

What is the federal reserve and what is its purpose?

• Central bank of the USA

• Controls inflation rates

• Sets interest rates for other bak

• All answers are correct

True or False: High interest is always bad

• True

• False