Career Quiz/ PF Review

Which of the following statements is TRUE about compound interest?

• Compound interest is difficult to calculate, so those who use it earn higher profits for their efforts

• Compound interest means you have a fund manager who is compounding your returns without charging a fee

• Compound interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned

• Compound interest directly impacts how much you will be charged in fees

Why is diversification a recommended investment strategy?

• Investing in a diversified portfolio guarantees that you won’t lose money with your investments

• If you tell your fund manager to use diversification, they’ll charge you lower fees

• If you diversify your portfolio, you will definitely earn a high return

• Diversifying your portfolio helps reduce risk

How is a bond different from a stock?

• A bond is a loan you give to an organization while a stock is partial ownership in a company

• Bonds are typically riskier than stocks but have the potential to earn higher returns

• Bonds are usually issued by smaller startup companies while stocks are issued by well established organizations

• Bonds are best for earning high returns while stocks are best for providing a stable source of income

Budgeting is

• about spending money on what you value

• what most Americans do to manage their money.

• all about restricting and suffering

• not difficult.

Which of the following is most important to include on a resume when applying for your first job?

• Your favorite hobbies and interests

• A long paragraph about your personal life

• A detailed list of all your school grades

• Your work experience, including any volunteer work

Why is it important to use action verbs in your resume?

• To make the resume longer

• To make your responsibilities and accomplishments sound more impactful

• To confuse the reader with complex language

• To list every task you’ve ever done, regardless of relevance

Why should you use reverse chronological order when listing your work experience on a resume?

• It allows you to list the oldest job first.

• It highlights your most recent and relevant experience at the top.

• It focuses on the jobs that are the least important.

• It helps you save space by listing fewer jobs.

Why is LinkedIn an important tool for job seekers?

• It allows you to post personal updates and opinions.

• It helps employers find and connect with you based on your professional profile.

• It replaces the need for a resume.

• It’s only useful for people looking for internships.

How can LinkedIn help you expand your professional network?

• By letting you follow your friends’ personal lives

• By allowing you to connect with professionals in your industry, share content, and engage in conversations

• By replacing all in-person networking events

• By only allowing you to connect with people you already know

What is the main advantage of using a high-yield savings account over a regular savings account?

• Higher interest rates that allow your money to grow faster

• Easier access to your funds without any fees

• No minimum balance requirements

• A guaranteed return even in a market downturn