Financial Literacy Quiz Set 2s

You have a $2,000 loss. Your insurance company pays you $1,500 on the claim for the loss. The $500 the insurance did not pay is a result of your policy having a:

• Deductible

• Co-payment

• Exclusion

• Limit of Liability

What is a credit score?

• A number used to determine how much credit to extend to a person.

• A measure of a person's income level.

• A rating of a person's investment portfolio.

• A score that indicates a person's savings account balance.

What is the chief reason corporations issue stock?

• To raise money for the corporation

• To increase employee salaries

• To reduce company debt

• To improve product quality

When the market has a steady decline in stock prices over a period of time, it is known as a:

• Bull market

• Bear market

• Stagnant market

• Volatile market

To make sure you will always remember your automated teller machine (ATM) card personal identification number (PIN), you should write the PIN and keep it:

• In a secure place at home

• In your wallet for easy access

• On a sticky note on your computer

• In a public place for convenience

Which financial product has the most predictable income?

• Certificate of deposit

• Stocks

• Real estate investment trusts

• Mutual funds

Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:

• A savings plan

• A checking account

• A loan agreement

• An investment strategy

The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are:

• Salaries, wages, and tips

• Investment income from stocks

• Rental income from properties

• Government assistance programs

When is there high risk for a stock to become worthless?

• the business that issued the stock is about to declare bankruptcy

• the stock has consistently high dividends

• the company is expanding into new markets

• the stock price has doubled in the last year

You have a checking account balance of $100 and you deposit a personal $200 check from your brother in your checking account. When will you be able to withdraw $150 in cash?

• Immediately after deposit

• 1 to 2 days later

• 3 to 7 days later, depending on your bank's check clearance policy

• In 10 to 14 days