WorksheetsFINANCIAL TERMS
Total questions: 20
Worksheet time: 10mins
What is the main difference between a bank and a credit union?
A credit union is privately owned and a bank is publicly owned.
A credit union is not-for-profit and a bank is for-profit.
A credit union is for-profit and a bank is not-for-profit.
You must meet a specific characteristic to belong to a bank.
Which of the following terms does not deal with investing for the future?
Retirement Plan
Social Security
Bond
Overdraft
Which term does not relate to delinquency in paying bills?
Late Fee
Collection Agency
Appreciation
Bankruptcy
Which of the following is not a type of investment opportunity?
Budget
Stock
Bond
Mutual Fund
Which of the following is not a type of savings account?
CD
Emergency Fund
IRA
APR
Which of the following is not an additional fee you must pay for using credit?
APR
IRA
Finance Charge
Annual Fee
Which of the following would not be considered an asset?
Your home
Your car
Your credit card
Your stocks
Which of the following is NOT a positive about direct deposit?
You do not have to go to the bank to deposit your paycheck.
You know your paycheck will make it into your account on time.
You get to physically touch your money before you spend it.
Your money is automatically transferred without you having to worry about it.
Why is your credit score important?
It determines what type of job you will get.
It determines whether you will be allowed to borrow money.
It determines how much money you pass on to your beneficiaries.
It determines how much money you have when you retire.
Who collects taxes?
The government
Individuals
Businesses
Employers
Why is it important to hire a Certified Financial Planner?
To receive professional guidance and fiduciary advice tailored to your goals
To avoid paying any fees on investments altogether
Because they can guarantee high investment returns
To legally evade taxes on all income
Why should you regularly create a budget?
To track income and expenses and control spending
To automatically qualify for every loan
To increase your salary without changing jobs
To avoid paying monthly bills
Why do you think companies provide a grace period?
To allow customers extra time to pay without penalty
To increase immediate revenue from late fees
To discourage customers from buying goods
To reduce product quality to cut costs
Why do people take out loans?
To finance large purchases they cannot pay for upfront
To reduce their income over time
To avoid building any credit history
To permanently lower the price of goods
Why is it important to not just pay the minimum payment on a credit card?
Paying only the minimum keeps balances longer and increases total interest paid
It immediately boosts your credit score to the highest level
It cancels any annual fees on the card
It provides bonus income from the bank
What is a mortgage?
A loan used to purchase real estate that is secured by the property
A type of credit card used for everyday purchases
A savings account designed for retirement contributions
A fee charged when a payment is late
Why is it important to diversify your investments?
To reduce risk by spreading money across different assets
To guarantee profits regardless of market conditions
To avoid paying taxes on investment gains
To focus entirely on a single stock or sector
Why do people use ATMs more than banks these days?
Convenience and 24/7 access to cash
Because brick-and-mortar banks no longer exist
ATMs offer higher interest rates on deposits
ATMs allow people to withdraw unlimited free money
Why is it important to be financially literate?
To make informed decisions and avoid costly mistakes
To ensure you never have to work
To guarantee wealth regardless of income
To avoid paying any taxes
What are some ways you can stay financially literate?
Take courses, read reputable sources, and follow financial news
Ignore money topics and hope for the best
Rely only on friends’ opinions for advice
Spend freely without planning or saving
