Personal Finance Review

Front

Which of the following is a primary function of financial institutions? Options: Enforcing tax collection, Providing services for saving, borrowing, and capital formation, Setting global economic policies, Managing international trade agreements

Back

Providing services for saving, borrowing, and capital formation

Front

What happens when the amount of savings in an economy increases?

Back

Capital formation improves.

Front

How does interest influence saving and investment decisions?

Back

Lower interest encourages borrowing for productive use.

Front

Which type of account typically offers the highest interest rates for savings? Options: Checking accounts, Money market accounts, Basic savings accounts, Certificate of Deposit (CD)

Back

Certificate of Deposit (CD)

Front

Which of the following is a wise investment strategy for long-term financial growth? Frequent day trading, Creating a diversified portfolio, Only investing in high-risk stocks, Keeping all money in cash savings

Back

Creating a diversified portfolio

Front

What is the primary benefit of starting a savings program early?

Back

Greater compound interest over time

Front

Reconciling a bank statement involves:

Back

Comparing recorded transactions with bank statements.

Front

Which of the following is NOT a common type of loan? Auto loan, Mortgage, Payday loan, Donation loan

Back

Donation loan

Front

What is one major responsibility when borrowing money?

Back

Making regular, on-time payments

Front

How can an individual improve their credit score?

Back

Paying off balances in full regularly