Competent Financial Literacy Quiz (Easy)Online version Test your financial literacy knowledge by passing the quiz before time expires! by WM 1 What is a number showing how well you manage borrowed money? a Interest rate b Credit score c APR d Debt 2 What is it called when you spread your money across different investments? a Risk management b Diversification c Budgeting d Refinancing 3 What is the original amount of money borrowed or invested called? a Dividend b Interest c Principal d Yield 4 What is the cost of borrowing money, including interest and fees, called? a APR b Credit limit c Capital d Refinancing 5 What is a retirement plan offered by employers called? a Roth IRA b ETF c Savings account d 401k 6 What do you call the chance of losing money on an investment? a Diversification b Yield c Risk d Credit limit 7 What is the maximum amount you can borrow on a credit card? a Credit score b APR c Credit limit d Loan amount 8 What is it called when you replace a loan with a new one for better terms? a Refinancing b Diversification c APR d Leverage 9 What is a category that determines how much tax you pay based on income? a Mutual fund b Interest rate c Tax bracket d Principal 10 What is interest earned on both the principal and the accrued interest? a Simple Interest b Fixed Interest c APR d Compound Interest 11 What is anything valuable you own, like money, a house, or gold? a Liability b Asset c Net Worth d Capital 12 Something that costs you money but doesn't make you more money is called a: a Risk b Capital c Liability d Debt-to-Income Ratio 13 Money or resources you can use to start or grow something, like a business or investment, is called: a Risk Tolerance b Net Worth c Asset Allocation d Capital 14 A strategy to help you manage your money and reach your financial goals is called a: a Budget b Credit Report c Tax Strategy d Financial Plan 15 How much and how quickly the value of an investment goes up or down is called: a Liquidity b Inflation c Volatility d Appreciation 16 A legal process for people or businesses who cannot pay their debts is called: a Foreclosure b Bankruptcy c Refinancing d Debt Consolidation 17 The value of what you own (assets) minus what you owe (liabilities) is called: a Income b Net Worth c Principal d Capital Gains 18 How comfortable you are with the possibility of losing money on an investment is called: a Risk Tolerance b Diversification c Financial Plan d Volatility 19 A significant decline in economic activity spread across the economy, lasting more than a few months is called a: a Inflation b Volatility c Risk Tolerance d Recession 20 Interest that is only calculated on the original amount of money invested or borrowed is called: a Yield b Simple Interest c Compound Interest d Cash Flow 21 The percentage of available credit a person is using, which affects their credit score is called: a Credit limit b Credit report c Utilization rate d Credit score 22 When there is more of something than is needed, it’s called a: a Demand b Supply c Surplus d Inflation 23 When there are not enough resources to meet people’s wants and needs, it’s called: a Scarcity b Inflation c Surplus d Supply 24 When taxes on income or investments are delayed until a later time, it’s considered: a Tax-advantaged b Tax-deferred c Appreciation d Postponed 25 All the investments you own is called your: a Investments b Net worth c Assets d Portfolio 26 A percentage showing how much money you made compared to what you invested is called a: a Profit b ROI c Equity d Appreciation 27 Dividing your money among different types of investments to balance risk and reward is called: a Division b Volatility c Asset Allocation d Refinancing 28 The central bank of the United States that controls the money supply and interest rates is called the: a United States Bank of America b Federal Bank of America c Central Bank of America d Federal Reserve 29 An exchange where investors buy and sell shares of public companies is called the: a Stock Market b Federal Reserve c 401k d Black Market 30 Property consisting of land, and anything permanently attached to it or built on it, whether natural or man-made is called: a Personal Property b Real Estate c Investment d Asset 31 Someone who starts or owns a business is called a: a Landlord b Manager c CEO d Entrepreneur 32 How quickly you can turn something into cash without losing value is called: a Withdrawal b Liquidity c Profit d ROI 33 The total value of all goods and services a country produces in a year is called the: a GDP b ROI c APR d IRA
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