WorksheetsBanking and Finance Quiz 1
Total questions: 15
Worksheet time: 8mins
What is the definition of a budget?
A plan for spending based on your income and expenses
A method for saving money in a bank account
A strategy for investing in stocks
A list of monthly bills and payments
Which budgeting strategy divides income into 50% Needs, 30% Wants, and 20% Savings?
Pay Yourself First
Envelope Budgeting
Zero-Based Budgeting
50/30/20 Rule
What does the 'Pay Yourself First' budgeting strategy prioritize?
Spending money on wants before needs
Saving a set amount before any other expenses are paid
Using cash divided into physical envelopes
Assigning every dollar of income to a specific expense
What is the penalty associated with a Certificate of Deposit (CD) account?
High minimum balance requirement
Limited check-writing options
Early withdrawal penalty
No interest earned
What is the primary goal of financial regulators?
To increase interest rates on savings accounts
To ensure stability, confidence, and compliance in the financial system
To provide loans to individuals
To manage personal savings accounts
Which of the following is NOT covered by FDIC or NCUA insurance?
Checking accounts
Stocks and mutual funds
Savings accounts
Certificates of Deposit (CDs)
What is the range of a credit score?
200-700
300-850
100-900
400-800
What is the term for the cash paid upfront when buying a house?
Principal
Interest
Down Payment
Loan Amount
What is the main concern of regulators regarding FinTechs managing 401(k) accounts?
High fees charged by FinTechs.
Sharing passwords is considered unsafe.
Lack of FDIC insurance.
Limited investment options.
What is the term for the fee paid to the lender when borrowing money?
Principal
Down Payment
Interest
Loan Amount
Which type of account is employer-sponsored and often includes free money through matching contributions?
IRA
Social Security
401(k)
Roth
Which of the following best describes a FinTech company?
A company that manufactures financial hardware
A company that uses technology to offer financial services
A traditional brick-and-mortar bank
A government regulatory agency
Which of the following is a common feature of mobile banking apps?
Ability to deposit checks remotely
No access to account balances
Requirement to visit a branch for all transactions
Paper statements only
Which of the following actions can help improve your credit score?
Applying for multiple loans at once
Paying off debts on time
Maxing out your credit cards
Making late payments on bills
What is a key benefit of using a Roth IRA for retirement savings?
Contributions are tax-deductible
Funds can only be used for education expenses
Employers match your contributions
Withdrawals in retirement are tax-free
