Financial Facts Quiz

Financial Facts Quiz

Question 1:

True or false: The stock market has historically provided a higher rate of return than savings accounts or bonds.

Question 2:

True or false: A mutual fund is a type of investment that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Question 3:

True or false: A credit score is a numerical rating that represents a person's creditworthiness, and can range from 300 to 850.

Question 4:

True or false: The higher the interest rate, the lower the cost of borrowing.

Question 5:

True or false: Diversification is a strategy that involves spreading your investments across different asset classes to reduce risk.

Question 6:

True or false: An exchange-traded fund (ETF) is a type of investment that tracks the performance of a specific market index.

Question 7:

True or false: A Roth IRA is a retirement account that allows you to make tax-free withdrawals in retirement, but contributions are not tax-deductible.

Question 8:

True or false: Compound interest is the interest earned only on the principal amount of an investment.

Question 9:

True or false: A bear market is a period of time when the stock market experiences a general decline in prices.

Question 10:

True or false: A 401(k) is a type of retirement account that is only available to government employees.

Question 11:

True or false: An emergency fund is a savings account that is set aside to cover unexpected expenses, such as car repairs or medical bills.

Question 12:

True or false: Short selling is a strategy that involves buying stocks with the hope that they will increase in value over time.

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