Personal Finance

Personal finance experts recommend trying to save _________% of your income.

• 5 to 10

• 10 to 20

• 20 to 30

• 30 to 40

• 40 to 50

What percentage of your credit card bill do personal finance experts recommend paying every month?

• 10%

• 25%

• 50%

• 75%

• 100%

Trivia: What is the average interest rate on a credit card?

• 3%

• 5%

• 8%

• 10%

• 18%

A 401(k) _____________

• is a type of stock exchange

• is a type of tax-advantaged retirement savings plan

• is a type of real estate investment

• is a special type of interest rate

• is a special way to pay one's taxes

"Stock" is best defined as ___________.

• a share of ownership in a corporation

• an investment in which a person lends money to a business at a specified interest rate

• the right to receive money from the government on a future date

• a share of ownership in the government-owned enterprise

Personal finance experts recommend investing in the stock market by ________________.

• buying stocks that have increased in value recently

• buying stocks that have decreased in value recently and are therefore likely to increase in value again

• hiring a stock expert who knows which stocks are going to go up in value and which are going to go down in value

• buying a diversified index fund and holding it for a long time

Diversification refers to ________________

• investing in stocks that are likely to go up in value

• investing in a tax-advantaged retirement plan

• investing in a large variety of investments to reduce risk

• investing in corporations that are very profitable

Historically, the average annual inflation-adjusted return on stocks has been about _______ per year.

• 1%

• 3%

• 7%

• 15%

• 30%

Personal finance experts recommend that if you have a financial advisor, insist that s/he commit to the ____________ standard, which means putting the client's interests first.

• expert

• suitability

• wealth enhancement

• fiduciary

• top

_______________ is a financial service that protects you from an unexpectedly large expense.

• A savings account

• The stock market

• Insurance

• A government bond