Spring 2025 Commonly Missed Questions

What is the smallest denomination of coins in the United States?

• $0.05

• $0.10

• $0.01

• $0.25

Which financial product usually pays the highest rate of interest?

• Savings Account

• Certificate of Deposit

• Checking Account

• Money Market Account

Which of the following is a right as a shareholder of common stock?

• To receive interest payments

• To hire corporate officers

• To receive dividends if paid

• To apply for loans at lower interest rates

What factor is likely to affect the market price of a stock?

• The age of the corporation

• Corporate profits

• The number of employees

• The company's location

What does the term 'deductible' refer to in an insurance policy?

• The amount the insurance company will pay

• The amount you pay before the insurance covers the rest

• The monthly premium amount

• The total policy coverage amount

Which type of investment is guaranteed by the federal government?

• Corporate Bonds

• Common Stocks

• Municipal Bonds

• U.S. Treasury Notes

Which statement best describes the relationship between interest rates and bond prices?

• They move in the same direction

• They are unrelated

• They move in opposite directions

• They affect only new bonds

What is the primary purpose of the Federal Reserve System?

• To issue savings bonds

• To manage the nation's money supply

• To provide loans to businesses

• To insure deposits at banks

What is predatory lending?

• Lending practices that are fair and equitable

• Lending with excessive fees and high interest rates

• Offering loans with no credit checks

• Providing government-backed loans

What action should a person take who must make a tuition payment at the end of August each year?

• Save the full amount a week before payment

• Decide the total amount needed and invest that amount in stocks monthly

• Place 1/12th of the needed amount in a separate account each month

• Borrow the full amount each year