Econ Vocab Quiz #5

Which of the following is considered an asset?

• Inventory
• Accounts Payable
• Equipment Liability
• House

How do you calculate net worth?

• Net worth = Total Assets - Total Liabilities
• Net worth = Total Revenue - Total Costs
• Net worth = Total Assets + Total Liabilities
• Net worth = Total Income + Total Expenses

Which of the following would NOT be on a credit report?

• Personal hobbies or interests
• Loan payment history
• Credit card balances
• Length of Credit

Which is a benefit of a CD?

• Higher interest rates than regular savings accounts.
• Lower interest rates than regular savings accounts.
• No penalties for early withdrawal.
• Unlimited access to funds without restrictions.

What is a Mutual Fund?

• A mutual fund is an investment that pools money from multiple investors to invest in a diversified portfolio.

• A mutual fund is a government bond that guarantees returns.
• A mutual fund is a loan given to businesses for expansion.
• A mutual fund is a type of bank account for saving money.

When you diversify your investments you are....

• increasing the volatility of your investments
• concentrating your assets in one sector
• reducing risk in your investment portfolio
• eliminating all potential losses

Which type of tax bracket system do we have in the US?

• Progressive tax bracket system
• Value-added tax system
• Regressive tax bracket system
• Flat tax bracket system

Which of the following is a benefit of a credit card?

• No impact on credit score
• Deferred payment and rewards
• High interest rates
• Limited acceptance at stores

A 529 savings plan is for....

• retirement savings
• education savings
• vacation funds
• healthcare expenses

The two types of IRA's are

• Basic IRA and Premium IRA
• Flexible IRA and Fixed IRA
• Traditional IRA and Roth IRA
• Savings IRA and Investment IRA