The Principles Of Finance Quiz! Trivia

The given statement correctly defines virtual banking as a service that enables individuals to access banking and related services online. This means that individuals can perform various banking activities such as checking account balances, transferring funds, and making payments through virtual platforms instead of physically visiting a bank branch. Therefore, the answer "True" accurately reflects the statement provided.

Cash flow refers to the movement of money in and out of a business or individual's accounts. It represents the inflow and outflow of cash, including income, expenses, investments, and loans. Understanding cash flow is crucial for managing finances effectively and making informed financial decisions. By tracking how money comes in and goes out, individuals and businesses can assess their financial health, plan for future expenses, and ensure they have enough funds to cover their obligations.

The given answer is true because economic risk refers to the possibility of adverse changes in macroeconomic conditions, such as exchange rates. These changes can have a significant impact on businesses, investments, and economies as a whole. Therefore, it is important for individuals and organizations to assess and manage economic risk to mitigate potential losses and make informed decisions.

The correct answer is "A mutual fund is a pool of money run by a professional or a group of professionals." This explanation accurately describes a mutual fund as a collective investment vehicle where multiple investors pool their money together and entrust it to professional fund managers who make investment decisions on their behalf.

The correct answer is "Anything you own that has monetary value." This answer accurately defines assets as something that you possess and that holds value in terms of money. It encompasses a wide range of items such as property, investments, or even cash itself. By considering assets in this way, it allows for a comprehensive understanding of the concept and its relevance in financial matters.

The correct answer is "Is a loan an investor makes to a government or corporation." This answer accurately describes a bond as a financial instrument where an investor lends money to a government or corporation in return for periodic interest payments and the repayment of the principal amount at maturity. Bonds are commonly used by entities to raise funds for various purposes, such as financing infrastructure projects or expanding business operations.

The given answer explains that the risk in this situation is that the company may perform poorly, resulting in the loss of a portion or all of the investments made. This implies that there is a possibility of financial loss if the company fails to succeed or goes bankrupt.

Credit unions are financial institutions that are typically created to serve a specific group of people, such as employees of a particular industry or organization. In this case, the correct answer suggests that credit unions are available to teachers, government employees, and individuals working in the industry. This means that these specific groups of people are eligible to become members of the credit union and access its services, such as loans, savings accounts, and other financial products.

Making deposits can be difficult in virtual banking because there are no physical branches or ATMs where customers can deposit cash or checks. Instead, customers have to rely on electronic methods such as mobile check deposit or wire transfers, which may not be as convenient or readily available as traditional banking methods. This can be seen as a disadvantage for those who prefer or require physical deposit options.

Expenses are costs or expenditures that need to be paid for. In this question, the examples of expenses are provided as options. Tuition & book, Transportation, and Fun stuff are all examples of expenses. Tuition & book refers to the cost of education and study materials, Transportation refers to the cost of traveling, and Fun stuff refers to the cost of leisure activities or entertainment. Scholarships and summer job, on the other hand, are not expenses as scholarships are financial aid or grants, and summer job is a source of income.

Smart goals are applicable to everyone as individuals and organizations set goals to achieve specific objectives. It is a common practice for people to make goals in various aspects of their lives, such as personal, professional, health, or financial goals. Therefore, the statement "Everyone make goals all the time" accurately reflects the concept of smart goals being applicable to everyone.

Credit unions are financial institutions that are formed by an organized group of individuals, typically with a common bond such as being employees of the same company or members of a specific community. Unlike traditional banks, credit unions are not-for-profit organizations that are owned and operated by their members. They offer a variety of financial services such as savings accounts, loans, and credit cards. One of the key benefits of credit unions is that they often provide lower interest rates on loans and higher interest rates on savings compared to traditional banks.

Passive income refers to the earnings generated from investments or businesses in which the individual does not actively participate. Unlike wages income, salary income, and commissions income, passive income does not require direct involvement in working or selling products/services. It is typically derived from rental properties, dividends, interest, or profits from businesses in which the individual has invested. Therefore, passive income is considered the main income as it allows individuals to earn money without actively working for it.

Liabilities are financial obligations or debts that an individual or organization owes to others. Examples of liabilities include mortgage, car loan, student loan, and credit card payments. These are all forms of borrowed money or credit that need to be repaid over time. Books and debit card payments, on the other hand, are not liabilities as they do not represent any outstanding debts or obligations.

The correct answer is Specific, Measurable, Realistic. These three characteristics are commonly associated with SMART goals. Specific goals are clear and well-defined, leaving no room for ambiguity. Measurable goals can be quantified or evaluated to track progress and determine success. Realistic goals are achievable and within reach, considering available resources and constraints. Studious and organized are not typically included in the SMART goal framework.

Bank services include personal and business checking accounts, credit card services, and currency exchange services. These services allow individuals and businesses to manage their finances, make transactions, and access credit facilities. Personal and business checking accounts provide a secure place to deposit and withdraw funds, while credit card services offer a convenient way to make purchases and access credit. Currency exchange services enable customers to convert one currency into another for international transactions or travel purposes.

The correct answer is Economic, Inflation, and Business. These three options are all risks that can impact an organization's operations and performance. Economic risks refer to factors such as market fluctuations, recession, or changes in government policies that can affect the overall economy and subsequently impact businesses. Inflation risk refers to the potential increase in prices of goods and services, which can reduce purchasing power and profitability. Business risks encompass a wide range of uncertainties, including competition, technological changes, and market demand, which can affect the success and sustainability of a business.

Virtual banking offers several advantages such as better yields in accounts, meaning that customers can potentially earn higher interest rates on their savings. Additionally, virtual banking is accessible from anywhere, allowing customers to manage their finances conveniently from any location. Another advantage is lower service and bounced-check fees, which can help customers save money on banking transactions.

The factors that influence your goal are family, age, habits, and culture. Family plays a significant role in shaping your goals as they can provide support, resources, and guidance. Age is another factor as it can determine the opportunities and limitations you may face in achieving your goals. Habits also play a crucial role as they can either help or hinder your progress towards your goal. Lastly, culture can influence your goals by shaping your values, beliefs, and expectations.

The given answer includes various sources of income, such as wages, bonds, mutual funds, gifts, and public assistance. Wages refer to the money earned through employment, while bonds and mutual funds are investment options that can generate income. Gifts and public assistance are also mentioned as potential sources of income. It is worth noting that the mention of mutual funds and gifts is duplicated in the given answer.