Question 1

Which of the following refers to how quickly you can convert an asset into cash?

Accepted Answer

A)  Investments. 
B)  Savings. 
C)  Emergency fund. 
D)  Liquidity. 
A)  Investments. 
B)  Savings. 
C)  Emergency fund. 
D)  Liquidity.

Question 2

Which of the following is an attribute of a dedicated savings account?

Accepted Answer

A)  Very liquid. 
B)  Low returns. 
C)  Very flexible. 
D)  FDIC or NCUSIF insured. 
A)  Very liquid. 
B)  Low returns. 
C)  Very flexible. 
D)  FDIC or NCUSIF insured.

Question 3

Which type of risk is often overlooked when making financial plans?

Accepted Answer

A)  Inflation risk. 
B)  Business risk. 
C)  Interest rate risk. 
D)  Liquidity risk. 
A)  Inflation risk. 
B)  Business risk. 
C)  Interest rate risk. 
D)  Liquidity risk.

Question 4

Which type of risk refers to when you cannot sell something you own because of a weak market?

Accepted Answer

A)  Inflation risk. 
B)  Business risk. 
C)  Interest rate risk. 
D)  Liquidity risk. 
A)  Inflation risk. 
B)  Business risk. 
C)  Interest rate risk. 
D)  Liquidity risk.

Question 5

Which of the following is a type of U.S. savings bond?

Accepted Answer

A)  Certificate of deposit. 
B)  Series EE, only. 
C)  Series I, only. 
D)  Both Series EE and Series I. 
A)  Certificate of deposit. 
B)  Series EE, only. 
C)  Series I, only. 
D)  Both Series EE and Series I.

Question 6

Monetary assets include which of the following?

Accepted Answer

A)  Cash. 
B)  Savings. 
C)  Checking accounts. 
D)  All of these answer choices are correct. 
A)  Cash. 
B)  Savings. 
C)  Checking accounts. 
D)  All of these answer choices are correct.

Question 7

Which of the following is an attribute of a savings account?

Accepted Answer

A)  Very liquid. 
B)  Low returns. 
C)  Very flexible. 
D)  All of these answer choices are correct. 
A)  Very liquid. 
B)  Low returns. 
C)  Very flexible. 
D)  All of these answer choices are correct.

Question 8

________ returns mean ________ risk.

Accepted Answer

A)  Lower; lesser 
B)  Higher; lesser 
C)  Higher; greater 
D)  Lower; greater 
A)  Lower; lesser 
B)  Higher; lesser 
C)  Higher; greater 
D)  Lower; greater

Question 9

Which of the following refers to your minimum monthly dollar amount needed to replace in case of an emergency?

Accepted Answer

A)  Emergency fund ratio. 
B)  Monthly living expenses. 
C)  Monetary assets. 
D)  Pure risk. 
A)  Emergency fund ratio. 
B)  Monthly living expenses. 
C)  Monetary assets. 
D)  Pure risk.

Question 10

Which of the following is true regarding minors?

Accepted Answer

A)  Minors cannot, under law, own property and assets. 
B)  Minors are allowed, under law, to own property and assets, but they must be supervised. 
C)  Minors cannot own an IRA. 
D)  Minors cannot own land. 
A)  Minors cannot, under law, own property and assets. 
B)  Minors are allowed, under law, to own property and assets, but they must be supervised. 
C)  Minors cannot own an IRA. 
D)  Minors cannot own land.

Question 11

Which of the following is a basic requirement that must be met in order to contribute to a Roth IRA?

Accepted Answer

A)  You must have earned income. 
B)  You may only contribute up to a specified annual limit. 
C)  Your adjusted gross income must be less than a specified amount. 
D)  All of these answer choices are correct. 
A)  You must have earned income. 
B)  You may only contribute up to a specified annual limit. 
C)  Your adjusted gross income must be less than a specified amount. 
D)  All of these answer choices are correct.

Question 12

Which of the following can you use to fund a Roth IRA?

Accepted Answer

A)  Writing a check and mailing it to the financial institution. 
B)  Initiating an electronic payment to the investment company from your financial institution (i.e., bill pay, wire transfer, etc.). 
C)  Authorizing the investment company to pull the money out of your bank account. 
D)  All of these answer choices are correct. 
A)  Writing a check and mailing it to the financial institution. 
B)  Initiating an electronic payment to the investment company from your financial institution (i.e., bill pay, wire transfer, etc.). 
C)  Authorizing the investment company to pull the money out of your bank account. 
D)  All of these answer choices are correct.

Question 13

Geoffrey is looking for a safe investment for $3,000 he received as a bonus. He is looking for an investment that will also help him deal with the effects of inflation. Which of the following options would you recommend that Geoffrey invest in?

Accepted Answer

A)  Series EE bonds. 
B)  Series I bonds. 
C)  Junk bonds. 
D)  Commercial paper. 
A)  Series EE bonds. 
B)  Series I bonds. 
C)  Junk bonds. 
D)  Commercial paper.

Question 14

Which of the following is a crime in which someone wrongfully obtains and uses your personal data in some way that involves fraud or deception for his or her economic gain?

Accepted Answer

A)  Ponzi scheme. 
B)  Pyramid scheme. 
C)  Telemarketing fraud. 
D)  Identity theft. 
A)  Ponzi scheme. 
B)  Pyramid scheme. 
C)  Telemarketing fraud. 
D)  Identity theft.

Question 15

Which of the following refers to the interest rate on I bonds?

Accepted Answer

A)  Variable. 
B)  Fixed. 
C)  5%. 
D)  3%. 
A)  Variable. 
B)  Fixed. 
C)  5%. 
D)  3%.

Question 16

How long can a U.S. savings bond continue to earn interest from the issue date?

Accepted Answer

A)  10 years. 
B)  20 years. 
C)  30 years. 
D)  40 years. 
A)  10 years. 
B)  20 years. 
C)  30 years. 
D)  40 years.

Question 17

Which of the following refers to your inflation-adjusted return?

Accepted Answer

A)  Nominal return. 
B)  Interest rate. 
C)  Real rate of return. 
D)  Liquidity risk. 
A)  Nominal return. 
B)  Interest rate. 
C)  Real rate of return. 
D)  Liquidity risk.

Question 18

Delia received a refund of $3,100 from her federal and state taxes this year. She admits that she is not good at saving money. She has asked you to help her find the right savings product to help keep her money safe, to allow her to access a small amount of the money if needed without a penalty, and to earn more than a regular savings account. The best option for Delia would be to put her money in a

Accepted Answer

A)  dedicated savings account. 
B)  certificate of deposit. 
C)  money market savings account. 
D)  mutual fund. 
A)  dedicated savings account. 
B)  certificate of deposit. 
C)  money market savings account. 
D)  mutual fund.

Question 19

Why are financial institutions reluctant to open accounts for those who are considered minors?

Accepted Answer

A)  A minor is generally exempt from binding clauses in contracts, only. 
B)  Anyone who has yet to reach the age of majority (18 years in most cases) can change his or her mind on a transaction or trade after the deal is done, only. 
C)  Both a minor is generally exempt from binding clauses in contracts and anyone who has yet to reach the age of majority (18 years in most cases) can change his or her mind on a transaction or trade after the deal is done. 
D)  A minor doesn't have an earned income. 
A)  A minor is generally exempt from binding clauses in contracts, only. 
B)  Anyone who has yet to reach the age of majority (18 years in most cases) can change his or her mind on a transaction or trade after the deal is done, only. 
C)  Both a minor is generally exempt from binding clauses in contracts and anyone who has yet to reach the age of majority (18 years in most cases) can change his or her mind on a transaction or trade after the deal is done. 
D)  A minor doesn't have an earned income.

Question 20

The best form of emergency savings is which of the following?

Accepted Answer

A)  Highly liquid cash assets. 
B)  Borrowing the needed funds. 
C)  Charging the needed funds to a credit card. 
D)  Taking money from your retirement account. 
A)  Highly liquid cash assets. 
B)  Borrowing the needed funds. 
C)  Charging the needed funds to a credit card. 
D)  Taking money from your retirement account.

Which of the following refers to how quickly you can convert an asset into cash?

Which of the following is an attribute of a dedicated savings account?

Which type of risk is often overlooked when making financial plans?

Which type of risk refers to when you cannot sell something you own because of a weak market?

Which of the following is a type of U.S. savings bond?

Monetary assets include which of the following?

Which of the following is an attribute of a savings account?

returns mean risk.

Which of the following refers to your minimum monthly dollar amount needed to replace in case of an emergency?

Which of the following is true regarding minors?

Which of the following is a basic requirement that must be met in order to contribute to a Roth IRA?

Which of the following can you use to fund a Roth IRA?

Geoffrey is looking for a safe investment for $3,000 he received as a bonus. He is looking for an investment that will also help him deal with the effects of inflation. Which of the following options would you recommend that Geoffrey invest in?

Which of the following is a crime in which someone wrongfully obtains and uses your personal data in some way that involves fraud or deception for his or her economic gain?

Which of the following refers to the interest rate on I bonds?

How long can a U.S. savings bond continue to earn interest from the issue date?

Which of the following refers to your inflation-adjusted return?

Why are financial institutions reluctant to open accounts for those who are considered minors?

The best form of emergency savings is which of the following?

Beginning Your Financial Journey: the Interior Finance Point of View

Tools for Your Financial Journey

Earnings and Income: the Building Blocks of Your Financial Journey

Personal Taxation

Checking Accounts, Credit Scores, and Credit Cards

Loans and Housing Decisions

Investments

Risk Management: the Role of Insurance

Planning for the Future: Retirement and Estate Planning

Filters

Exam 7: The Foundation of Savings

Which of the following refers to how quickly you can convert an asset into cash?

Which of the following is an attribute of a dedicated savings account?

Which type of risk is often overlooked when making financial plans?

Which type of risk refers to when you cannot sell something you own because of a weak market?

Which of the following is a type of U.S. savings bond?

Monetary assets include which of the following?

Which of the following is an attribute of a savings account?

________ returns mean ________ risk.

Which of the following refers to your minimum monthly dollar amount needed to replace in case of an emergency?

Which of the following is true regarding minors?

Which of the following is a basic requirement that must be met in order to contribute to a Roth IRA?

Which of the following can you use to fund a Roth IRA?

Geoffrey is looking for a safe investment for $3,000 he received as a bonus. He is looking for an investment that will also help him deal with the effects of inflation. Which of the following options would you recommend that Geoffrey invest in?

Which of the following is a crime in which someone wrongfully obtains and uses your personal data in some way that involves fraud or deception for his or her economic gain?

Which of the following refers to the interest rate on I bonds?

How long can a U.S. savings bond continue to earn interest from the issue date?

Which of the following refers to your inflation-adjusted return?

Why are financial institutions reluctant to open accounts for those who are considered minors?

The best form of emergency savings is which of the following?

Beginning Your Financial Journey: the Interior Finance Point of View

Tools for Your Financial Journey

Earnings and Income: the Building Blocks of Your Financial Journey

Personal Taxation

Checking Accounts, Credit Scores, and Credit Cards

Loans and Housing Decisions

Investments

Risk Management: the Role of Insurance

Planning for the Future: Retirement and Estate Planning

Filters

returns mean risk.