Master the Art of Budgeting and Income with This Finance Quiz
20 Questions
3 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is NOT a characteristic of a credit union?

  • Nonprofit
  • For-profit (correct)
  • Cooperative
  • Member-owned

    • What is the purpose of a checking account?

  • To provide credit for the purchase of consumer goods and services
  • To protect your money in the event of a bank failure
  • To easily make withdrawals, deposits, and fund transfers (correct)
  • To deposit money safely with the bank

    • What is market liquidity?

  • The ability to quickly convert an asset into cash
  • The ability to quickly obtain credit
  • The ability to quickly transfer funds between accounts
  • The ability to quickly purchase or sell an asset without causing a drastic change in the asset's price (correct)

    • What does FDIC protect in the event of a bank failure?

    <p>Your money (A)</p> Signup and view all the answers

    What is a non-bank financial institution?

    <p>A financial institution that is not legally a bank (B)</p> Signup and view all the answers

    What is the main function of an investment bank?

    <p>To provide investment and financial services for corporate and institutional customers (B)</p> Signup and view all the answers

    What is the typical duration of a savings account?

    <p>5 years (D)</p> Signup and view all the answers

    What is the purpose of under-insured motor coverage?

    <p>To protect you if you're hit by a driver who doesn't have enough coverage to pay for the damages or injuries they caused (C)</p> Signup and view all the answers

    What is the main advantage of a money market account?

    <p>Higher interest rate than regular savings accounts (C)</p> Signup and view all the answers

    Which of the following is the definition of budgeting?

    <p>The process of calculating how much money you must earn or save during a particular period of time, and of planning how you will spend it (C)</p> Signup and view all the answers

    What is the purpose of an amortization schedule?

    <p>To calculate the amount of money you pay in principal and interest over time (C)</p> Signup and view all the answers

    What is net pay?

    <p>Take-home pay after taxes (B)</p> Signup and view all the answers

    What is a tax deduction?

    <p>A provision that reduces taxable income (B)</p> Signup and view all the answers

    What is the purpose of the Federal Income Contributions Act (FICA) tax?

    <p>To fund Social Security and Medicare (A)</p> Signup and view all the answers

    What is a progressive tax?

    <p>Takes a larger percentage of income from high income taxpayers (B)</p> Signup and view all the answers

    What does the term 'postsecondary' refer to?

    <p>Any education option after high school (D)</p> Signup and view all the answers

    What is collateral?

    <p>Something pledged as security for repayment of a loan (B)</p> Signup and view all the answers

    What is the main function of a commercial bank?

    <p>To accept deposits from the public and give loans for consumption and investment (A)</p> Signup and view all the answers

    What are some steps to consider when planning for college?

    <p>Fill out the FAFSA, Search for scholarships, Choose an affordable school, Use grants if you qualify (B)</p> Signup and view all the answers

    What is an interest inventory?

    <p>A testing instrument designed to measure an individual's interest in a variety of activities (A)</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser