Personal Finance Test Review

Front

If a person buys too much on credit that they cannot afford to pay back they may face all of the following except: lower interest rates, damage to credit score, debt collection calls, bankruptcy

Back

lower interest rates

Front

Today most people make payments for goods and services using

Back

debit cards

Front

How do investors in stock reduce the risk in stock purchases? Options: Buy bonds, Buy certificates of deposit, Take out loans to purchase bigger shares, Invest in mutual funds

Back

Invest in mutual funds

Front

What is one of the best ways to make good financial decisions? Options: Invest in multiple types of investments, Make purchases only on credit to build a high credit score, Create a personal budget, Take out loans to pay off credit card debt

Back

Create a personal budget

Front

When prices rise faster than wages, how does this impact an individual’s spending decisions?

Back

People can afford less and spend less

Front

What is a system of spreading risks over large numbers of people?

Back

insurance

Front

What type of policy would a person take out to provide their family with money in the event of their death?

Back

Life insurance

Front

If a company is projected to make a loss in profit, how might this impact the company’s stock?

Back

The company's stock may decrease.

Front

Which of the following is an example of long-term credit? Car loan, Personal loan, Life insurance, Mortgage

Back

Mortgage

Front

Enacted in 1935, the Social Security Act created __________ and __________.

Back

unemployment insurance; old-age pensions