Financial Terms Quiz

What is cash?

• Money in the form of coins or bills

• Money invested in stocks

• A type of financial asset

• A part of a company's profit

Hannah is considering putting her savings into a new business venture. What does investment refer to?

• A financial asset that can be traded

• Money put into something with the hope of making more money

• Money kept aside for emergencies

• The value of ownership in a business

What is a dividend?

• The value of assets owned

• Money used to start a business

• Money provided for a specific purpose

• A part of a company's profit given to shareholders

What does funding mean?

• Money kept in a bank for future needs

• A type of financial asset

• The value of ownership in property

• Money provided for a specific purpose

What is capital?

• Money in the form of coins or bills

• A part of Samuel's profit from his lemonade stand

• Money or assets used to start or grow Mason's business

• A financial asset that represents ownership

What is the purpose of saving money?

• To spend on luxury items

• To ensure financial security for the future

• To invest in stocks and bonds

• To pay off debts immediately

What does security refer to in finance?

• Money in the form of coins or bills

• The value of ownership in a business

• A financial asset that can be traded

• Money provided for a specific purpose

What is equity?

• The value of ownership in something

• Money kept aside for emergencies

• A part of a company's profit

• Money invested in stocks

What is the main benefit of having a budget?

• To track spending and save money

• To increase debt

• To avoid paying taxes

• To spend more on entertainment

What does liquidity refer to in finance?

• The ease of converting assets into cash

• The total amount of money in a bank account

• The value of a company's stock

• The amount of debt a person has