10 Questions
What is a stock?
A share of a company's ownership
What is the benefit of a well-diversified index fund?
It reduces the risk of losses due to stock market fluctuations
What is the main difference between individual stocks and index funds?
Individual stocks involve buying and selling individual companies
What is the purpose of government bonds in a portfolio?
To diversify and reduce risk
What happens when a government bond reaches its maturity date?
You can collect your original investment and interest
What is the primary benefit of having a savings account?
To build up an emergency fund for unexpected expenses
What happens if you withdraw your money from a Certificate of Deposit before the term is up?
You are charged a penalty
What is the main difference between a savings account and a Certificate of Deposit?
A CD has a fixed interest rate for a fixed period
Why is a savings account ideal for unexpected expenses?
It provides a safe place to store money for emergency situations
What determines the interest rate of a Certificate of Deposit?
The length of the term
Test your understanding of basic personal finance concepts, including saving money, interest rates, and building an emergency fund. Learn how to make smart financial decisions and avoid losing money. Improve your financial literacy with this quiz!
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