Income and Finance Quiz

What is an example of a source of income?

• Wages

• Taxes

• Loans

• Gifts

What is the purpose of an allowance in terms of taxation?

• To increase taxed income

• To reduce taxed income

• To eliminate taxed income

• To double taxed income

Which type of account is considered the most liquid?

• Savings bonds

• Checking accounts

• Real estate

• Retirement funds

What is a money order used for?

• To invest in stocks

• To pay for groceries

• To make a payment order for a pre-specified amount of money

• To apply for a loan

Who is most hurt by inflation?

• People with large savings

• Lenders (banks) and people on a fixed income

• People with variable income

• People who owe large amounts of money

What does the Treasury Department do?

• Invest in foreign markets

• Collect taxes, print money, issue treasury bonds

• Provide loans to individuals

• Manage private bank accounts

What happens if you cash a CD before maturity?

• You receive a bonus

• There is a penalty

• The interest rate increases

• The bank waives all fees

Which institutions typically charge the highest interest rates on loans?

• Credit unions

• Pawnshops and payday lenders

• Commercial banks

• Insurance companies

What is an advantage of using a credit union?

• Higher interest rates on loans

• Lower interest rates on loans

• No interest on loans

• Unlimited loan amounts

What is overdraft protection?

• A feature that prevents any bank transactions

• A loan that is paid back to prevent overdrawing

• A savings account feature

• A type of insurance policy