Personal Financial Planning #1

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Financial Management Quizzes & Trivia

Personal Financial planning quiz on credit and basics of financial planning


Questions and Answers
  • 1. 

    What does A.P.R stand for?

    • A.

      Annual Percentage Ratio

    • B.

      Annual Percentage Rate

    • C.

      Annuity Percentage Rate

    • D.

      Actual Purchase Ratio

    Correct Answer
    B. Annual Percentage Rate
    Explanation
    APR stands for Annual Percentage Rate. It is a measure used to calculate the cost of borrowing, expressed as a yearly interest rate. The APR takes into account not only the interest rate, but also any additional fees or charges associated with the loan. It is commonly used in mortgage loans, credit cards, and other forms of consumer borrowing to compare different loan options and determine the true cost of borrowing.

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  • 2. 

    Economics is the study of how wealth is created and distributed.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Economics is indeed the study of how wealth is created and distributed. It examines the production, consumption, and allocation of goods and services, as well as the behavior of individuals, businesses, and governments in relation to economic activities. By understanding the principles of economics, we can gain insights into how societies generate and distribute wealth, which can help inform policy decisions and improve overall economic well-being.

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  • 3. 

    What is financial literacy?

    • A.

      The vocabulary needed to manage one's personal finances

    • B.

      The ability to balance a check book

    • C.

      The ability to accurately gauge A.P.R

    • D.

      Understanding the rules of credit

    Correct Answer
    A. The vocabulary needed to manage one's personal finances
    Explanation
    Financial literacy refers to the knowledge and understanding of the terms and concepts related to managing one's personal finances. It includes being familiar with financial vocabulary, such as terms like budgeting, saving, investing, and debt management. By having a good grasp of financial terms, individuals can effectively navigate their personal finances, make informed decisions, and effectively communicate with financial institutions and professionals. This knowledge helps them to plan and achieve their financial goals and make sound financial choices.

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  • 4. 

    What is another name for Annual Percentage Rate or A.P.R.?

    • A.

      Interest

    • B.

      Savings

    • C.

      Bonds

    • D.

      Investments

    Correct Answer
    A. Interest
    Explanation
    The correct answer is "Interest" because Annual Percentage Rate (APR) is a term used to describe the interest rate charged on a loan or credit card. It represents the annual cost of borrowing, including both the interest rate and any additional fees or charges. Therefore, APR is directly related to the concept of interest.

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  • 5. 

    Which of the following do most Americans use to pay for a home loan?

    • A.

      Using credit cards

    • B.

      Repossessed Loans

    • C.

      Car Loans from the Bank

    • D.

      Mortgage Loans

    Correct Answer
    D. Mortgage Loans
    Explanation
    Most Americans use mortgage loans to pay for a home loan. Mortgage loans are specifically designed for purchasing a home, and they allow individuals to borrow a large sum of money over a long period of time to finance their home purchase. This type of loan is secured by the property itself, meaning that if the borrower fails to make payments, the lender can take possession of the property. Mortgage loans typically offer lower interest rates compared to other loan options, making them the most common choice for financing a home purchase in the United States.

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  • 6. 

    What is the first step in building a financial portfolio for yourself?

    • A.

      Determine your current financial situation

    • B.

      Estimate your income and expenses ten years from now

    • C.

      Create a financial excel sheet

    • D.

      Decide what you want your job to be in the future

    Correct Answer
    A. Determine your current financial situation
    Explanation
    The first step in building a financial portfolio is to determine your current financial situation. This involves assessing your income, expenses, assets, and liabilities. By understanding your current financial standing, you can make informed decisions about how to allocate your resources and set realistic financial goals for the future. This step is crucial as it provides a foundation for creating a comprehensive and effective financial plan.

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  • 7. 

    You should never change or alter a financial plan regardless of the situation.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    It is not accurate to say that you should never change or alter a financial plan regardless of the situation. Financial plans are not set in stone and should be flexible to adapt to changing circumstances. Life events, such as a job loss or unexpected expenses, may require adjustments to the plan. Additionally, as financial goals and priorities evolve over time, it may be necessary to modify the plan accordingly. Therefore, it is important to regularly review and make changes to a financial plan as needed.

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  • 8. 

    Which of the following is an example of a personal financial statement?

    • A.

      Bank Statements

    • B.

      Personal Budgets

    • C.

      Cash Flow Statement

    • D.

      All of the Above

    • E.

      None of the Above

    Correct Answer
    D. All of the Above
    Explanation
    All of the options listed are examples of personal financial statements. Bank statements provide information about an individual's financial transactions and balances. Personal budgets outline income, expenses, and savings goals. Cash flow statements track the inflow and outflow of cash over a specific period. Therefore, all of these options can be considered personal financial statements as they provide a snapshot of an individual's financial situation.

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  • 9. 

    What does the acronym S.M.A.R.T represent?

    • A.

      Specific, Measurable, Action Oriented, Realistic, Timely

    • B.

      Superficial, Measured, Acceptable, Renumbered, Tedious

    • C.

      Special, Median, Adopted, Redistributed, Tenacious

    • D.

      Studious, Men, Are, Really, Tired

    Correct Answer
    A. Specific, Measurable, Action Oriented, Realistic, Timely
    Explanation
    The acronym S.M.A.R.T represents Specific, Measurable, Action Oriented, Realistic, Timely. These are the criteria used for setting effective goals. Specific goals are clear and well-defined, measurable goals have quantifiable criteria to track progress, action-oriented goals focus on the actions needed to achieve the goal, realistic goals are achievable within the given resources and constraints, and timely goals have a specific timeframe for completion. This acronym is commonly used in project management and personal development to ensure that goals are well-planned and achievable.

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  • 10. 

    What is a consequence of choice?

    • A.

      Opportunity Cost

    • B.

      Evaluation

    • C.

      Scarcity

    • D.

      Creativity

    Correct Answer
    A. Opportunity Cost
    Explanation
    Opportunity cost refers to the value of the next best alternative that is foregone when making a choice. It represents the consequences or trade-offs of choosing one option over others. By choosing a particular option, one loses the opportunity to benefit from the alternative options. Therefore, opportunity cost is a direct consequence of choice, as it highlights the potential benefits that could have been gained from the unchosen alternatives.

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  • 11. 

    How often should you review and revise your personal financial plans?

    • A.

      Once a decade

    • B.

      Once in high school, college, and prior to having a child

    • C.

      Once a year

    • D.

      Once a year or when significant events occur

    Correct Answer
    D. Once a year or when significant events occur
    Explanation
    It is important to review and revise personal financial plans once a year or when significant events occur. Financial situations can change rapidly, and reviewing plans annually ensures that they remain aligned with current goals and circumstances. Additionally, major life events such as getting married, having children, or changing jobs can have a significant impact on financial plans, necessitating a revision to accommodate these changes. Therefore, regular reviews and revisions are essential to maintain a healthy and effective financial plan.

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  • 12. 

    Which company will be facing an I.P.O this upcoming spring?

    • A.

      Google

    • B.

      MySpace

    • C.

      AT&T

    • D.

      Facebook

    Correct Answer
    D. Facebook
    Explanation
    Facebook will be facing an IPO this upcoming spring.

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  • 13. 

    What does I.P.O stand for in terms of financial public offerings in the stock market?

    • A.

      Initial Public Offering

    • B.

      Imagining Peaceful Offerings

    • C.

      Investment Public Offering

    • D.

      Institution Promises Olives

    Correct Answer
    A. Initial Public Offering
    Explanation
    An Initial Public Offering (IPO) refers to the process of a private company becoming a publicly traded company by offering its shares to the general public for the first time. This allows the company to raise capital from investors and expand its operations. The other options provided in the question, such as Imagining Peaceful Offerings, Investment Public Offering, and Institution Promises Olives, do not have any relevance to financial public offerings in the stock market.

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  • 14. 

    Facebook is valued anywhere from 75 billion to 100 billion

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Facebook's valuation can range from 75 billion to 100 billion dollars. This means that the company is estimated to be worth between these two amounts, indicating a high market value. The statement is true as it accurately reflects the potential valuation of Facebook.

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  • 15. 

    How long should short term goals last?

    • A.

      One Week

    • B.

      Less than One Year

    • C.

      Two Years

    • D.

      One Month

    Correct Answer
    B. Less than One Year
    Explanation
    Short term goals should last for less than one year because they are intended to be achieved within a relatively short period of time. These goals are typically more immediate and specific, focusing on short-term actions and outcomes. Setting a timeframe of less than one year allows for a sense of urgency and helps to maintain focus and motivation. It also allows for regular reassessment and adjustment of goals as needed.

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  • 16. 

    What is the name of the balance for your credit card?

    • A.

      Average Daily Balance

    • B.

      Interest Rate Charges

    • C.

      Homeowners' Insurance

    • D.

      A.P.R.

    Correct Answer
    A. Average Daily Balance
    Explanation
    The correct answer is Average Daily Balance. The average daily balance refers to the method used by credit card companies to calculate the amount of interest owed on a credit card. It is calculated by adding up the balance on each day of the billing cycle and dividing it by the number of days in the cycle. This method takes into account any payments or purchases made during the billing cycle and provides a more accurate representation of the balance than simply looking at the balance on the statement date.

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  • 17. 

    Intermediate financial goals should last between one to five years

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Intermediate financial goals are typically set for a shorter time frame, usually between one to five years. This is because they are considered to be mid-term goals that require a shorter period of time to achieve compared to long-term goals. Setting a time frame of one to five years allows individuals to plan and work towards achieving these goals within a reasonable and realistic timeframe. Therefore, the given answer "True" is correct.

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  • 18. 

    Long-term financial goals should last over five years.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Long-term financial goals should last over five years because they typically involve major financial milestones such as buying a house, saving for retirement, or funding a child's education. These goals require a longer time horizon to accumulate the necessary funds and achieve the desired outcome. Shorter-term goals can be accomplished within a few years or less, while long-term goals require a more extended period of time to save, invest, and grow wealth. Therefore, it is true that long-term financial goals should last over five years.

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  • 19. 

    What is the one of the most popular forms of credit?

    • A.

      Debit Cards

    • B.

      Credit Cards

    • C.

      Cash Money

    • D.

      Checking Accounts

    Correct Answer
    B. Credit Cards
    Explanation
    Credit cards are one of the most popular forms of credit because they allow individuals to make purchases on credit and pay for them at a later date. They offer convenience and flexibility, allowing users to make purchases online and in-store, as well as providing various benefits such as rewards and cashback. Unlike debit cards, credit cards do not require immediate payment from a linked bank account, giving users the ability to manage their expenses and build a credit history. Additionally, credit cards often come with added security features and protection against fraud.

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  • 20. 

    Shopping around for a credit card is not something you should consider as a consumer

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    As a consumer, it is important to shop around for a credit card. By comparing different credit card offers, you can find the one that best suits your needs in terms of interest rates, fees, rewards, and other benefits. This allows you to make an informed decision and potentially save money in the long run. Therefore, the statement that shopping around for a credit card is not something you should consider as a consumer is incorrect.

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  • 21. 

    What is a credit limit?

    • A.

      A determined set amount of money on a credit card

    • B.

      An overdraft protection number on your checking account

    • C.

      A type of personal investment strategy

    • D.

      A limited amount of personal net worth

    Correct Answer
    A. A determined set amount of money on a credit card
    Explanation
    A credit limit refers to a predetermined maximum amount of money that an individual can borrow or spend using a credit card. This limit is set by the credit card issuer based on factors such as the individual's creditworthiness and income. It represents the maximum balance that can be carried on the card at any given time. Exceeding the credit limit may result in penalties or fees, and it is important for cardholders to manage their spending within this limit to maintain a good credit score and avoid financial difficulties.

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  • 22. 

    What does pin stand for in terms of your credit or debit card?

    • A.

      Personal Identification Number

    • B.

      Professional Insurance Name

    • C.

      Punctual Insurance Necessity

    • D.

      Persistent Insistent Nonexistent

    Correct Answer
    A. Personal Identification Number
    Explanation
    A PIN, in terms of your credit or debit card, stands for Personal Identification Number. It is a unique numeric code that is used as a security measure to verify the identity of the cardholder during transactions. The cardholder enters the PIN at an ATM or a point-of-sale terminal to authorize the transaction, ensuring that only the authorized user can access and use the card.

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  • 23. 

    What is a pin number?

    • A.

      A specific number designed by the bank

    • B.

      A specific and private number created by the card user

    • C.

      A type of credit card

    • D.

      A type of good luck charm

    Correct Answer
    B. A specific and private number created by the card user
    Explanation
    A pin number is a specific and private number created by the card user. It is used as a security measure to authenticate the cardholder's identity when making transactions or accessing their account. This number is known only to the cardholder and should not be shared with anyone else to prevent unauthorized access to their funds or personal information.

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  • 24. 

    What is diminished marginal utility?

    • A.

      Refers to satisfaction decreasing with each use

    • B.

      Refers to the opportunity cost of choosing apples overs pears

    • C.

      Is a business term and does not impact personal finance

    • D.

      Refers only to specific income taxes

    Correct Answer
    A. Refers to satisfaction decreasing with each use
    Explanation
    Diminished marginal utility refers to the concept that the satisfaction or enjoyment derived from consuming or using a product or service decreases with each additional unit consumed. This means that as a person consumes more of a particular good or service, the additional satisfaction or utility they derive from each additional unit diminishes. In other words, the more you have of something, the less satisfaction you get from each additional unit. This concept is important in economics and helps explain consumer behavior and decision-making.

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  • 25. 

    When you eat a special meal and attempt to recreate that meal and your satisfaction diminishes afterwards. That is an example of diminishing marginal utility.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    When you eat a special meal and attempt to recreate that meal, the satisfaction you experience from the recreated meal is likely to be less than the satisfaction you had from the original meal. This is because of diminishing marginal utility, which states that as you consume more of a particular good or service, the additional satisfaction or utility you derive from each additional unit decreases. In this case, the first time you had the special meal, it was a unique and enjoyable experience. However, when you try to recreate it, it may not live up to your initial expectations, resulting in diminished satisfaction.

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  • 26. 

    What is inflation?

    • A.

      Representation of falling prices

    • B.

      The total value of all goods

    • C.

      A steady rise in the general level of prices

    • D.

      Your actual real income

    Correct Answer
    C. A steady rise in the general level of prices
    Explanation
    Inflation refers to a steady rise in the general level of prices. It means that over time, the prices of goods and services increase, causing the purchasing power of money to decrease. This can be caused by various factors such as increased demand, increased production costs, or changes in government policies. Inflation is an important economic indicator as it affects the cost of living, interest rates, and overall economic stability.

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  • 27. 

    What does GDP represent?

    • A.

      Gross Domestic Product

    • B.

      General Domestic Production

    • C.

      Generating Dollars Program

    • D.

      Gross Distribution Positioning

    Correct Answer
    A. Gross Domestic Product
    Explanation
    GDP represents Gross Domestic Product, which is a measure of the total value of all goods and services produced within a country's borders in a specific time period. It is used to gauge the economic health and growth of a nation, as it reflects the overall level of economic activity and productivity. GDP takes into account consumer spending, government spending, investment, and net exports. It is an important indicator for policymakers, economists, and investors to assess the performance of an economy and make informed decisions.

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  • 28. 

    What does the acronym CPI pertain to in terms of personal finance?

    • A.

      Consumer Price Index

    • B.

      Customers Pricing Individually

    • C.

      Consumer Producers Index

    • D.

      Controlling Production Independence

    Correct Answer
    A. Consumer Price Index
    Explanation
    The acronym CPI stands for Consumer Price Index. This term refers to a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is commonly used to track inflation and assess changes in the cost of living. The CPI is an important tool in personal finance as it helps individuals understand how prices of goods and services are changing, allowing them to make informed decisions regarding budgeting, saving, and investing.

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  • 29. 

    What does the GDP measure?

    • A.

      The value of all expenditures by the United States Government

    • B.

      The value of all goods and services produced by workers in the US

    • C.

      The value of all goods and services produced by the government and United States workers

    • D.

      The net value of all goods in the world

    Correct Answer
    B. The value of all goods and services produced by workers in the US
    Explanation
    The GDP (Gross Domestic Product) measures the value of all goods and services produced by workers in the US. It is a measure of the economic activity within a country and provides an indication of the overall health and size of the economy. By calculating the total value of goods and services produced, the GDP helps in assessing economic growth, productivity, and standard of living.

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  • 30. 

    When prices are rising, what must an individual's income also must do to keep pace?

    • A.

      Decrease to provide purchasing stability

    • B.

      Increase to match inflation

    • C.

      Decrease to match productivity

    • D.

      Remain the same

    Correct Answer
    B. Increase to match inflation
    Explanation
    When prices are rising, an individual's income must also increase to match inflation in order to keep pace. This is because inflation erodes the purchasing power of money, meaning that the same amount of money can buy fewer goods and services over time. Therefore, if an individual's income remains the same while prices are rising, their purchasing power will decrease. By increasing their income to match inflation, individuals can maintain their purchasing stability and afford the same level of goods and services as before.

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  • 31. 

    What does real income reflect?

    • A.

      Minimal amount of purchasing power of companies

    • B.

      Maximum purchasing power of money

    • C.

      The buying power of your nominal income

    Correct Answer
    C. The buying power of your nominal income
    Explanation
    Real income reflects the buying power of your nominal income. This means that real income takes into account the effects of inflation and measures the actual purchasing power of your income. It considers the increase or decrease in prices over time and allows you to assess how much you can actually buy with your income.

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  • 32. 

    What is another name for nominal income?

    • A.

      Money Income

    • B.

      Income

    • C.

      Deflation

    • D.

      Inflation

    Correct Answer
    A. Money Income
    Explanation
    Another name for nominal income is money income. This term refers to the total amount of money an individual or entity earns before adjusting for inflation or any other factors. It represents the actual dollar value of income received, without considering changes in purchasing power or the effects of price increases over time.

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  • 33. 

    When inflation rises, the federal reserve attempts to print money to provide more dollars to individuals.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    When inflation rises, the Federal Reserve typically attempts to reduce the money supply in order to combat inflation. This is done through various methods such as increasing interest rates or implementing tighter monetary policies. Printing more money would actually exacerbate inflation by increasing the supply of money in circulation. Therefore, the statement that the Federal Reserve attempts to print money when inflation rises is false.

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  • 34. 

    When is the first quarter of the United States economic business cycle?

    • A.

      January through April

    • B.

      October through December

    • C.

      October through January 31

    • D.

      July through August

    Correct Answer
    B. October through December
    Explanation
    The first quarter of the United States economic business cycle is from October through December. This is because the business cycle is typically divided into four quarters, and the first quarter starts in October.

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  • 35. 

    What is a recession?

    • A.

      A decline in the business and governmental sector of the economy

    • B.

      A severe downward phase of the economy

    • C.

      A period of economic growth

    • D.

      A period where expansion rivals production

    Correct Answer
    A. A decline in the business and governmental sector of the economy
    Explanation
    A recession refers to a decline in the business and governmental sector of the economy. It is characterized by a significant decrease in economic activity, including a decline in GDP, increased unemployment rates, and reduced consumer spending. During a recession, businesses may experience lower profits and may have to lay off employees. Governments may also face decreased tax revenues and have to implement austerity measures. Overall, a recession is a severe downward phase of the economy that negatively impacts various sectors and indicators.

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  • 36. 

    When President Obama took office, the United States and most of the global economy was embroiled in a recession.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement is true because when President Obama assumed office, the United States and the global economy were indeed facing a recession. This was a result of the 2008 financial crisis, which had severe impacts on various industries and countries around the world. President Obama implemented several economic stimulus measures to address the recession and stabilize the economy during his tenure.

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  • 37. 

    There are four quarters in the United States business cycle.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement is true because the United States business cycle consists of four phases: expansion, peak, contraction, and trough. These phases represent the natural fluctuations in economic activity, including periods of growth and recession. Each phase typically lasts for several months to several years, and together they form a complete business cycle. Therefore, it is accurate to say that there are four quarters in the United States business cycle.

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  • 38. 

    What is the typical age for wealh accumulation for Americans?

    • A.

      Age 10-24

    • B.

      Ages 17-55

    • C.

      Ages 55-75

    • D.

      Ages 45-75

    Correct Answer
    B. Ages 17-55
    Explanation
    The typical age for wealth accumulation for Americans is between 17 and 55. This is because during this age range, individuals are typically in their prime working years and have the opportunity to earn and save money. They are often establishing their careers and may have fewer financial responsibilities such as paying off mortgages or supporting children. As a result, they have a higher likelihood of accumulating wealth during this time period.

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  • 39. 

    Which of the following best characterizes economic growth in an economy?

    • A.

      When production is in a decline

    • B.

      A condition of increasing production and consumption in the economy

    • C.

      A slight consecutive decline in production

    • D.

      Four quarter decrease in production

    Correct Answer
    B. A condition of increasing production and consumption in the economy
    Explanation
    The correct answer is "A condition of increasing production and consumption in the economy." This answer best characterizes economic growth in an economy because it implies that both production and consumption are increasing. Economic growth is typically measured by an increase in the production of goods and services, which leads to higher levels of consumption and overall economic activity.

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  • 40. 

    A credit card that offers an adjustable APR is a good credit card

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    A credit card that offers an adjustable APR can be considered a good credit card because it provides flexibility in interest rates. With an adjustable APR, the credit card issuer has the ability to lower or increase the interest rate based on market conditions or the cardholder's creditworthiness. This can be beneficial for cardholders as they may have the opportunity to take advantage of lower interest rates when they are available. However, it is important for cardholders to carefully monitor their interest rates and be aware of any potential increases that may occur.

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  • 41. 

    The United States is currently attempting to move out of which of the following economic cycles?

    • A.

      Recession

    • B.

      Depression

    • C.

      Expansion

    • D.

      Deceleration of Growth

    Correct Answer
    A. Recession
    Explanation
    The United States is currently attempting to move out of the recession economic cycle. A recession is a period of economic decline characterized by a decrease in GDP, high unemployment rates, and reduced consumer spending. During a recession, businesses may struggle, and the overall economy is in a downturn. Moving out of a recession means that the economy is recovering, with GDP starting to increase, unemployment rates decreasing, and consumer spending gradually improving. The United States, like many other countries, implements various fiscal and monetary policies to stimulate economic growth and overcome the negative effects of a recession.

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  • 42. 

    What type of investment would be buying Facebook stock?

    • A.

      Stock Investment

    • B.

      Savings Investment

    • C.

      Bond Investment

    • D.

      Government Bond Investment

    Correct Answer
    A. Stock Investment
    Explanation
    Buying Facebook stock would be considered a stock investment. Stocks represent ownership in a company, and by purchasing Facebook stock, an individual becomes a partial owner of the company. This type of investment involves buying shares of a company's stock with the expectation of earning a return through dividends or capital appreciation.

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  • 43. 

    How should you structure your investment portfolio?

    • A.

      All savings accounts to minimize risk

    • B.

      Balanced approach of stocks, mutual funds, bonds, and savings

    • C.

      Relying only on Social Security from the government

    • D.

      A strictly investment strategy utilizing only stock portfolios

    Correct Answer
    B. Balanced approach of stocks, mutual funds, bonds, and savings
    Explanation
    A balanced approach of stocks, mutual funds, bonds, and savings is recommended for structuring an investment portfolio. This approach helps to diversify investments across different asset classes, reducing the overall risk. Stocks offer the potential for higher returns, while mutual funds provide diversification within the stock market. Bonds offer stability and income, while savings provide liquidity and a safety net. By combining these different types of investments, individuals can create a well-rounded portfolio that balances risk and return. Relying solely on Social Security or utilizing only stock portfolios would not provide the same level of diversification and could expose the investor to higher risk.

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  • 44. 

    There is no specific way to predict what the stock market is going to do.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The stock market is influenced by a multitude of factors such as economic conditions, political events, investor sentiment, and company performance, making it unpredictable. These factors are constantly changing and can have unpredictable effects on the market. Therefore, it is difficult to accurately predict the future movements of the stock market.

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