Financial Literacy

Which of the following is a reason to establish a good credit score?

• It helps you get a loan.

• It helps you get a better interest rates on loans.

• It helps the borrower determine if a loan will be approved.

• All of the above.

What is the most accurate description of a stock?

• A stock is something a company sells once a year at a discount
• Stocks are like owning part of a company
• Stocks are like socks but stiff
• Stocks are the part of a company that can be bought

If you bought 20 stocks in a company that was worth $10.50 per stock at the time you purchased it, how much would you earn if you sold all 20 stock when the company was worth $12 per stock?

• $240
• $1.50
• $30
• $210

The group of stocks that you own is called a

• commission

• portfolio

• dividend

to buy a variety of stocks

• diversify

• portfolio

• risk

• profit

money from a companies profits that is paid to the stockholders

• transaction

• dividend

• profit

The type of investment account that helps people store their money for easy access if needed is known as a...

• Certificate of Deposit

• Savings account

• Retirement account

• Mutual fund

IRA's are

• Individual Retirement Accounts.

• Integrated Retirement Accounts.

• Inflation Resistant Accounts.

• . Individual Retirement Authorities.

If you have an IRA, you are required to start drawing income from it at age

• 50.

• 55.

• 59½.

• 62½.

Which of the following is a characteristic of a Roth IRA?

• Money invested into a Roth is “after-tax” dollars

• Money is deposited into a Roth by your employer.

• Money invested into a Roth is “before-tax” dollars.

• Once money is deposited into a Roth IRA, it cannot be taken out until retirement.