Personal Finance Quiz: Part 1
Total Questions : 25 Scoring System: Correct Answer : +1 points Incorrect Answer : -1 point Not Answered : 0 point The final result will appear at the end. All The Best.
- What is an emergency fund?
- Which of the following is a benefit of investing in the stock market?
- Which of the following is an example of a low-risk investment?
- What is the rule of 72 used for?
- Which of the following is an example of a high-yield savings account?
- What is a dividend?
- What is a mutual fund?
- What is dollar-cost averaging?
- What is a 401(k) plan?
- What is asset allocation?
- What is the difference between a stock and a bond?
- What is a stock market index?
- What is a limit order?
- What is diversification?
- What is a 529 plan?
- What is an emergency fund?
- How much money should you have in your emergency fund?
- What type of account should you use for your emergency fund?
- Why is it important to have an emergency fund?
- How should you calculate your emergency fund?
- How often should you review and adjust your emergency fund?
- What are some examples of unexpected expenses?
- What is the purpose of an emergency fund?
- Can you use credit cards as an emergency fund?
- What is the opportunity cost of not having an emergency fund?
A certificate of deposit for long-term savings
A savings account for retirement
A savings account for unexpected expenses
High returns with no risk
Potential for long-term growth
Guaranteed returns on investment
Savings accounts
Stocks
Real estate
Calculating the amount of taxes owed on investment gains
Determining the interest rate on a mortgage loan
Estimating the time it takes for an investment to double in value
Online savings account
Money market account
Certificate of deposit
A loan from a bank
A share of profits paid to investors
The amount owed on a credit card statement
An investment that pools money from multiple investors to purchase a variety of assets
A savings account with a high interest rate
A retirement savings account
Buying stocks only when their price is at a low point
Selling stocks only when their price is at a high point
Investing a fixed amount of money in a particular asset over time
A type of insurance policy that provides retirement income
An investment account for high-net-worth individuals
A tax-advantaged retirement savings plan offered by employers
The process of determining the best stocks to invest in
The process of dividing investments among different asset classes
The process of buying and selling stocks at the right time
A stock represents ownership in a company, while a bond represents a loan to a company
A stock represents a loan to a company, while a bond represents ownership in a company
A stock and a bond are the same thing
A measure of the overall performance of a particular stock market or segment of the market
A type of investment that pays interest on a regular basis
A list of all the companies listed on a particular stock exchange
An order to buy or sell a security immediately at the current market price
An order to sell a security if it falls below a certain price
An order to buy or sell a security at a specific price or better
The process of investing only in one type of asset to maximize returns
The process of investing in multiple types of assets to reduce risk
The process of investing in assets with high returns and low risk
A type of life insurance policy
An investment account for retirement savings
A tax-advantaged savings plan for college education expenses
Money set aside for planned expenses
Money invested in stocks and bonds
Money set aside for unexpected expenses
3 months' worth of expenses
6 months' worth of expenses
1 month's worth of expenses
Checking account
Savings account
Retirement account
To prepare for unexpected expenses
To fund vacations and luxury expenses
To save for retirement
Based on your income
Based on your debt
Based on your expenses
Every year
Every 6 months
Every 3 months
Car repairs, medical bills, and home repairs
Vacations, gifts, and hobbies
Food, clothing, and entertainment
To pay for everyday expenses
To cover unexpected expenses
To invest in the stock market
Yes, but it's not recommended because of high interest rates
No, credit cards are not a reliable source of emergency funds
Yes, as long as you pay off the balance in full each month
Not being able to afford everyday expenses
Having to pay higher interest rates on loans
Having to rely on credit cards or loans for unexpected expenses