Banking and Payment
The best way to insure more than $250k in cash is...?:
a) Multiple accounts at the same bank, same owner
b) Split across FDIC-insured banks
c) Convert all to crypto
d) Keep cash under your mattress
b) Split across FDIC-insured banks and/or ownership categories
FICO credit scores range from:
a) 100–700
b) 200–900
c) 300–850
d) 500–1000
c) 300–850
Diversification reduces mostly which risk?:
a) Market-wide risk
b) Company-specific risk
c) Inflation risk
d) Interest-rate risk only
b) Company-specific risk
The emergency fund rule of thumb is to have money in savings for at least:
a) 1–2 months
b) 3–6 months
c) 9–12 months
d) 24 months
b) 3–6 months
Who is the best person on center?
a) Max
b) Max
c) Max
d) Max
All of the above LOL ;)
Which are covered by FDIC insurance, Choose all that apply?
a) Checking accounts
b) Savings accounts
c) Certificates of Deposit
d) Mutual funds
a) Checking accounts
b) Savings accounts
c) Certificates of Deposit
Biggest factor that affects a credit score:
a) Length of history
b) Payment history
c) Number of inquiries
d) Total accounts opened
b) Payment history
Which represents ownership in a company?
a) Corporate bond
b) Common stock
c) CD
d) Treasury bill
b) Common stock
Which is usually a fixed monthly expense?
a) Groceries
b) Rent/mortgage
c) Electricity
d) Gasoline
b) Rent/mortgage
Comparing a private low-rate loan with heavy fees vs. federal loan with protections, the safer choice is usually:
a) Private loan (lowest sticker rate)
b) Federal loan (income-driven options, protections)
c) Neither — borrow max anyway
d) Mortgage conversion
b) Federal loan (income-driven options, protections)
To compare how much a savings account really pays over a year, you'd use:
a) Simple interest
b) APY (Annual Percentage Yield)
c) APR (Annual percentage rate)
d) Nominal rate
b) APY (Annual Percentage Yield)
A 0% APR promo usually means...?:
a) No interest ever
b) No interest during promo; normal APR applies later
c) All past balances forgiven
d) Balance must be paid in 7 days
b) No interest during promo; normal APR applies later
Liquidity means ability to convert to:
a) Real estate
b) Gold
c) Cash
d) Stocks
c) Cash
Payroll withholding means?:
a) Voluntary savings
b) Employer sends deductions to tax authorities before paycheck
c) A government loan
d) Penalty for not filing
b) Employer sends deductions to tax authorities before paycheck
A credit card “grace period” lets you:
a) Call issuer to waive all fees
b) Pay by due date to avoid interest (if no prior balance)
c) Get annual rebates
d) Transfer balance to another cardholder
b) Pay by due date to avoid interest (if no prior balance)
Your roommate wants to make sure their $600k is secure. What would be the best advice?
a) One bank, one account — guaranteed
b) Split across FDIC-insured banks/categories
c) Put it in Excel with a password
d) Convert to cryptocurrency
b) Split across FDIC-insured banks
Debt avalanche vs. debt snowball, choose all statements that are True:
a) Avalanche = smallest balance first; Snowball = highest interest
b) Avalanche = highest interest first; Snowball = smallest balance first
c) Both = pay largest balance first
d) Both = ignore interest rates
b) Avalanche = highest interest first; Snowball = smallest balance first
c) Both = pay largest balance first
Roth IRA contributions are made :
a) Pre-tax; withdrawals taxable
b) After-tax; withdrawals tax-free
c) Pre-tax; withdrawals tax-free
d) After-tax; withdrawals taxed later
b) After-tax; withdrawals tax-fre
APR includes interest rate plus...?:
a) Fees
b) Inflation
c) Taxes
d) Dividends
a) Fees
A higher deductible usually lowers...?:
a) Premium
b) Coverage
c) Claim payout
d) Co-pay
a) Premium
In banking, “float” refers to:
a) Excess interest paid on top of APY
b) Time between deposit initiation and availability
c) The overdraft protection feature
d) A minimum balance requirement
b) Time between deposit initiation and availability
When comparing loans, always check...?:
a) LIBOR (London Interbank Offered Rate)
b) APR (Annual Percentage Rate)
c) Prime rate
d) Flat fee
b) APR (Annual Percentage Rate)
Automatically reinvesting dividends is called:
a) Dividend harvesting
b) Dividend reinvestment plan (DRIP)
c) Dividend flipping
d) Dividend arbitrage
b) Dividend reinvestment plan (DRIP)
“This enemy of purchasing power eats cash value” — What is it?:
a) Deflation
b) Liquidity
c) Inflation
d) Credit risk
c) Inflation
A chart with the y-axis starting at $20k instead of $0 and exaggerates change is:
a) An accurate baseline use
b) a Misleading y-axis origin
c) a Standard best practice
d) a Proof of fast growth
b) Misleading y-axis origin