Personal Finance For Highschool Students Quiz

Consistently saving money each month is a true statement because it allows individuals to accumulate funds over time and create a financial cushion for future needs or emergencies. By regularly setting aside a portion of their income, individuals can build savings that can be used for long-term goals such as buying a house, funding education, or retirement. This practice also promotes financial discipline and helps individuals develop good money management habits.

When deciding between two items to purchase, it is important to consider both the costs and benefits of each item. By comparing the costs and benefits, one can make an informed decision and choose the item that offers the best value for their needs. This approach ensures that the decision is not solely based on the price of the item, but also takes into account the advantages and disadvantages of each option.

Interest is the correct answer because it refers to the percentage paid to a lender for the use of borrowed money. When someone borrows money, they are charged interest by the lender as a fee for using their funds. This interest rate is usually expressed as a percentage of the loan amount and is added to the total amount owed by the borrower.

Stocks have historically had the highest rate of return over long periods of time compared to bonds, bank savings accounts, and funds. This is because stocks represent ownership in a company, and as the company grows and becomes more profitable, the value of the stock increases. While stocks can be more volatile and risky in the short term, over the long term they have consistently outperformed other investment options, providing higher returns for investors.

The correct answer is "Both of the above". This means that interest can refer to both the amount you earn for keeping money in a savings account and the amount you pay for borrowing money. In both cases, interest is expressed as a percentage.

A bear market refers to a period when stock prices are falling. This means that the overall market sentiment is negative, and investors are selling their stocks, causing prices to decline. A bear market is typically characterized by pessimism, fear, and a lack of confidence in the market. It is the opposite of a bull market, where stock prices are rising. In a bear market, investors may adopt a more cautious approach and may seek to protect their investments by moving towards safer assets.

FDIC Insured means that the federal government will guarantee the safety of your deposits up to $250,000 in the event that the bank fails. This ensures that you will not lose your money even if the bank goes bankrupt or is unable to return your deposits.

A house would be expected to hold its value best during a time of inflation because it is a tangible asset that typically appreciates over time. Inflation causes the prices of goods and services to rise, which can lead to an increase in the value of real estate. Additionally, owning a house provides a sense of stability and security, making it a desirable investment during times of economic uncertainty.

The primary function of insurance is to pool and share risk among the insured. Insurance works by collecting premiums from a large group of individuals and using that money to compensate those who experience losses or accidents. By sharing the risk among the insured, the financial burden of any individual loss is spread out, making it more manageable for everyone involved. This allows individuals to protect themselves against potential financial hardships and provides a sense of security.

Excessive withdrawals fee is not a fee that is sometimes charged to a checking account. The other options mentioned, such as overdraft fee, minimum balance fee, and ATM fee, are commonly associated with checking accounts. However, excessive withdrawals fee is typically associated with savings accounts, where there may be limitations on the number of withdrawals that can be made in a given period.