FINANCE EASY 1
What is a credit score used for?
To evaluate a person’s creditworthiness
What is the 50/30/20 budget rule?
50% needs, 30% wants, 20% savings
What does FDIC stand for?
Federal Deposit Insurance Corporation
What does APR stand for in finance?
Annual Percentage Rate
What is a balance sheet?
A statement showing a company’s financial position
What’s the usual recommended percentage of income to save monthly?
20%
What is a stock?
Ownership in a company
What’s a cashier’s check?
A check guaranteed by a bank, drawn from its own funds
What is a 1099 form?
A tax form for non-employee income
What is interest on debt?
The cost of borrowing money
What does the term “net worth” mean?
The value of all assets minus liabilities
What is a mutual fund?
A pool of money from many investors to buy a diversified portfolio
What is a bank’s routing number used for?
Identifying the financial institution in a transaction
What Was the Biggest Financial Crisis in History?
TRICK QUESTION
The Great Depression (1929) and the 2008 Financial Crisis.
What is a secured loan?
A loan backed by collateral
What is a common retirement savings account in the U.S.
401(K)
What is a bear market?
A market that is declining in value
What is the limit of FDIC insurance per account per bank?
$250,000
What does the S&P 500 track?
EXACT ANSWER
The stock performance of 500 large companies in the U.S.
What is escrow?
A financial arrangement for holding funds safely
What’s a FICO score range?
300-850
What’s a trade deficit?
When imports exceed exports
What does ROI stand for?
Return on Investment
What does EBITDA stand for?
Earnings Before Interest, Taxes, Depreciation, and Amortization
What is fiscal policy?
Government adjustments to spending and tax rates