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Personal Finance Vocab Quiz #2

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Fill in the blank: The strategy of dividing investments among different asset categories to optimize risk and return is called _________?

a)

Asset Allocation

b)

Market Timing

c)

Short Selling

d)

Insider Trading

2.

Fill in the blank: A loan specifically used to purchase real estate, where the property serves as collateral, is called a _________

a)

Mortgage

b)

Credit Card

c)

Personal Loan

d)

Auto Loan

3.

Fill in the blank: The total income earned before any deductions, such as taxes or retirement contributions, is called _________.

a)

Gross Income

b)

Net Income

c)

Disposable Income

d)

Taxable Income

4.

What is the term for the following definition? A significant decline in economic activity across the economy lasting longer than a few months.

a)

Recession

b)

Inflation

c)

Stagflation

d)

Boom

5.

What is the term for the following definition? A loan backed by collateral, which reduces the lender's risk.

a)

Secured Loan

b)

Unsecured Loan

c)

Revolving Credit

d)

Payday Loan

6.

Fill in the blank: __________ is a professional who provides guidance on financial planning, investments, and other financial decisions.

a)

Financial Advisor

b)

Software Engineer

c)

Civil Engineer

d)

Chef

7.

What is the term for the following definition? The legal process by which a lender takes possession of a property when the borrower fails to make mortgage payments.

a)

Foreclosure

b)

Refinancing

c)

Amortization

d)

Appraisal

8.

Fill in the blank: __________ is a member-owned financial institution that provides banking services, often with lower fees and better interest rates than traditional banks.

a)

Credit Union

b)

Commercial Bank

c)

Payday Lender

d)

Investment Firm

9.

Fill in the blank: __________ is a legal process where a portion of a person's earnings is withheld for the payment of a debt.

a)

Wage Garnishment

b)

Bankruptcy

c)

Foreclosure

d)

Repossession

10.

Fill in the blank: ________ is an investment fund that employs diverse strategies to earn high returns, typically available only to accredited investors.

a)

Hedge Fund

b)

Mutual Fund

c)

Index Fund

d)

Exchange-Traded Fund

11.

Fill in the blank: ________ is a method of raising capital through the collective effort of a large number of individuals, typically via the internet.

a)

Crowdfunding

b)

Bartering

c)

Bootstrapping

d)

Angel Investing

12.

Fill in the blank: ________ are financial instruments that represent an ownership position in an asset (stock), a creditor relationship (bond), or rights to ownership (options).

a)

Securities

b)

Dividends

c)

Mortgages

d)

Commodities