Credit, Savings And Investment

12 Questions

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Credit Quizzes & Trivia

This quiz is designed to assess your applied understanding of introductory concepts.


Questions and Answers
  • 1. 
    A mortgage is an example of a closed-end credit.
    • A. 

      True

    • B. 

      False

  • 2. 
    Conservative, risk-adverse investors are attracted to small-cap stocks.
    • A. 

      True

    • B. 

      False

  • 3. 
    A bear market occurs when investors are pessimistic about the economy.
    • A. 

      True

    • B. 

      False

  • 4. 
    A portfolio that includes stocks invested in one (1) sector of the market is considered to be diversified.
    • A. 

      True

    • B. 

      False

  • 5. 
    Stocks represent ownership in a company.
    • A. 

      True

    • B. 

      False

  • 6. 
    BONUS:  _________ are similar to mutual funds. They invest in a sector of the market or the stocks that make up an index, such as the Nasdaq100.
    • A. 

      Index funds

    • B. 

      Exchange Traded Funds (ETFs)

    • C. 

      Commodities

  • 7. 
    The trade-off made by making one choice instead of another is commonly referred to as a(n)
    • A. 

      Trade decision

    • B. 

      Opportunity cost

    • C. 

      Personal choice

  • 8. 
    Credit cards allow the user to _________
    • A. 

      Spend only the amount in your account

    • B. 

      Borrow money for a short term

    • C. 

      Transfer money between accounts on-line

  • 9. 
    Which of the "five C's of credit" require that a peson's assets exceed his or her liabilities?
    • A. 

      Capacity

    • B. 

      Capital

    • C. 

      Collateral

  • 10. 
    The par value of a bond represents its ____________.
    • A. 

      Comparative value to other bonds issued by the same entity

    • B. 

      Total value, calculated by adding principal and interest

    • C. 

      Face value

    • D. 

      Discount rate

  • 11. 
    The P/E ratio for a stock represents________________.
    • A. 

      The price an investor is willing to pay for $1 worth of earnings.

    • B. 

      The priceof a stock in relation to the earnings per share

    • C. 

      Both A and B

  • 12. 
    A FICO score is a measure of _____________.
    • A. 

      A potential borrower's credit worthiness

    • B. 

      The likelihood an individual will repay a loan

    • C. 

      An individual's assets

    • D. 

      Both A and B