Personal Finance Quiz(26)

Define Interest

• The amount of money paid for the use of borrowed money

• A type of bank account

• A financial statement

• A type of investment

Interest charged on loan is defined as:

• The amount paid by the borrower to the lender for the use of borrowed money

• The principal amount of the loan

• The total amount of the loan including interest

• The duration for which the loan is taken

What financial services are offered by credit unions?

• Savings accounts and loans

• Real estate services

• Stock trading

• Cryptocurrency exchange

What financial services are offered by title pawn lenders?

• Car title loans

• Mortgage refinancing

• Credit card issuance

• Savings accounts

Mutual funds are:

• A type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities

• A type of savings account

• A form of insurance

• A type of loan

Which of the following lists three savings and investment options that have low risk and low returns?

• Stocks, Real Estate, Mutual Funds

• Savings Account, Certificates of Deposit, Treasury Bonds

• Cryptocurrency, Forex Trading, Hedge Funds

• Venture Capital, Private Equity, Commodities

List two savings and investment options that have high risk and high returns

• Stocks and Bonds

• Real Estate and Savings Accounts

• Mutual Funds and Certificates of Deposit

• Savings Accounts and Treasury Bills

Describe the relationship between risk vs return investments

• Higher risk typically leads to higher returns

• Lower risk always leads to higher returns

• Risk and return are not related

• Higher returns always come with lower risk

If you have a credit score of 720 you are in which of the following categories?

• Exceptional

• Very Good

• Good

• Fair

Simple interest is defined as:

• The interest calculated on the initial principal only

• The interest calculated on both the initial principal and the accumulated interest

• The interest calculated on the final amount

• The interest calculated on the initial principal and the final amount