Personal Finance
What is the financial term for money set aside specifically for unexpected expenses?
What is an emergency fund?
What does a bull market describe?
What is a market experiencing generally rising prices and investor optimism?
What is the difference between a debit card and a credit card?
A debit card uses money from your bank account, while a credit card borrows money from the issuer.
What does FinTech combine?
What are financial services and technology?
What is a sustained increase in the general price level of goods and services?
What is inflation?
What is the difference between a need and a want in personal finance?
What is a need being essential for living, while a want is something desired but not necessary?
What is the primary difference between a stock and a bond?
What is a stock represents ownership, while a bond represents debt?
What does a bank's FDIC insurance protect depositors against?
The loss of insured bank deposits if an FDIC-insured bank fails.
What technology allows cryptocurrencies to operate without relying on one central database controlled by a single institution?
What is blockchain/distributed ledger technology?
What is the primary responsibility of the Federal Reserve's monetary policy?
Promoting maximum employment and stable prices, along with moderate long-term interest rates
What financial concept describes the income you give up when choosing one opportunity over another?
What is opportunity cost?
What is dividend investing?
Investing in companies that distribute part of their profits to shareholders.
Why does your credit utilization ratio matter to your credit score?
Using a large percentage of available credit can signal greater credit risk.
What is biometric authentication?
Verifying someone's identity using biological characteristics such as fingerprints or facial recognition
What is the difference between monetary policy and fiscal policy?
Monetary policy is conducted by a central bank, while fiscal policy involves government spending and taxation.
Why can a high income alone fail to make someone financially wealthy?
Because wealth depends on assets, liabilities, spending, and saving, not just income.
Why might an investor choose an index fund instead of trying to select individual stocks?
To achieve broad diversification while generally using a passive investment strategy.
What is lending that uses unfair or deceptive practices and often imposes excessive or harmful costs on borrowers?
What is predatory lending?
Why are APIs important to modern FinTech companies?
They allow different software systems and financial services to securely communicate and exchange data.
Why might a central bank raise interest rates when inflation is too high?
To reduce borrowing and spending, which can decrease demand and help slow inflation.
What financial principle explains why receiving money today is generally more valuable than receiving the same amount in the future?
What is the time value of money?
What is systematic risk, and why can't diversification completely eliminate it?
Risk that affects the entire market or economy, such as recessions or major interest-rate change.
What is a system where banks keep only a portion of deposits available as reserves while lending out funds, creating new deposits through lending?
What is fractional-reserve banking?
What is embedded finance?
Its integrating financial services directly into non-financial platforms or products, such as offering payments or lending inside a shopping app.
What is quantitative easing (QE), and why might a central bank use it?
A large-scale purchasing of financial assets by a central bank to inject liquidity into the financial system and lower longer-term interest rates.