WorksheetsCredit & Investing
Total questions: 20
Worksheet time: 12mins
What is the term for a single unit of ownership in a corporation?
Bond
Mutual Fund
Annuity
Stock
What distinguishes saving from investing?
Saving is universal, while investing is exclusive to the affluent
Investments are insured, savings are not
Investments guarantee returns, unlike savings
Savings are for immediate needs & objectives, investing builds long-term wealth
Why should you start investing early?
Younger investors face less risk, ensuring safer investments
It allows more time for your investments to grow through compounding
Investing quickly generates substantial wealth
Investment fees are lower for younger individuals
What is the investment strategy where money from multiple investors is gathered to invest in stocks, bonds, and other securities?
Spreading Investments
Mutual Funds
Investment Gathering
Collective Investment Mix
Which is more short-term?
Saving
Investing
Which is considered more risky?
Saving money
Investing money
Which investment type carries the highest risk?
Stock
Mutual Fund
Bond
Money Market Account
The link between risk and return is best described as
Higher risk leads to higher return
Higher risk leads to lower return
Lower risk leads to higher return
There is no link between risk and return
If you borrow $500 and pay back $550, the extra $50 is called what?
Annual premium
Principal amount
Credit limit
Interest charged
Which scenario fits an installment loan?
Balance changes daily
Limit resets each cycle
Payment due when used
Fixed payments each month
What best describes principal in a loan?
Loan application fee
Monthly payment size
Total interest paid
Original amount borrowed
Which financial action is least likely to be affected by credit scores?
Applying for an auto loan
Paying cash for snacks
Choosing a phone service plan
Leasing an apartment unit
500
What is the type of loan used to purchase a home?
Revolving Loan
Mortgage
Small Bsuiness Loan
Student Loan
Which one of these is NOT one of the 3 main Credit Bureaus?
Equifax
Experian
FICO
TransUnion
Payment history accounts for around _______ of your credit score.
30%
20%
35%
25%
A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called wealth
Credit History
Credit Score
FICO Score
Net Worth
How often can you get a free credit report according to the learning material?
Once every six months
Once per year
Twice per year
Every month
Money paid regularly for the use of money borrowed
Amortization Schedule
Principal
Term
Interest
Which of the following probably has the highest credit score? Assume that all of them have made regular monthly payments on time.
An 18 year old college freshman
A 20 year old waitress with two active credit cards
A 40 year old business owner with two cars, a house, and four active credit cards
A 50 year old with five credit cards who rents his house.
