Financial Concepts Quiz

What is compound interest?

• Interest earned only on the original amount of the investment

• Interest earned on both the original amount and any interest already earned

• Interest earned only on the interest already earned

• Interest earned only on loans

What is a mortgage?

• A loan for buying a car

• A loan for starting a business

• A specific type of loan that is used to buy real estate

• A loan for education

What is disposable income?

• Income before taxes

• Income after all taxes and government deductions have been paid

• Income used for investments

• Income used for paying debts

What is discretionary income?

• Money left to spend after bills have been paid

• Money saved for emergencies

• Money used for investments

• Money used for paying taxes

What is a bank?

• A place to store goods

• An institution for receiving, keeping, and lending money

• A place to buy stocks

• An institution for educational loans

What is a mutual fund?

• A single stock investment

• A savings account

• An investment that contains a variety of stocks and other smaller investments

• A loan for buying real estate

What is a stock?

• A loan from a bank

• A share of ownership in a corporation

• A type of bond

• A savings account

What is debt?

• Money that you owe

• Money that you save

• Money that you invest

• Money that you earn

What happens when your bank balance goes below $0?

• Overdraft

• Bankruptcy

• Inflation

• Liquidity

What does GIC stand for?

• Guaranteed Investment Certificate

• General Investment Contract

• Government Investment Certificate

• Global Investment Certificate