FINANCIAL LITERACY 6-10 FINAL
EXERCISE WITH ANSWERS.
Who said the quote, "Men often oppose a thing merely because they have had no
agency in planning it, or because it may have been planned by those whom they
dislike"? - Answers-Alexander Hamilton
All careers in finance have to deal with the management of assets. - Answers-true
The Constitution directly states that Congress has the authority to create a national
bank - Answers-false
What was currency like in the United States before Congress created national banks
and a national system of currency in 1863? - Answers-Each state had its own currency.
Which of the following characteristics applies to the financial career of accountant?
(Select all that apply.) - Answers-An accountant is a qualified professional.
An accountant deals with financial records and reports.
A financial planner is __________. - Answers-a qualified professional who helps
individuals and businesses meet long-term financial goals
A tax attorney is a qualified professional who is knowledgeable about tax law. -
Answers-true
Some people in the United States were opposed to having a central bank because they
thought it would not be powerful enough to effectively handle their finances. - Answers-
false
Being financially literate means that you have the knowledge and understanding to
make informed financial choices. - Answers-true
In the terms of researching financial information, what does it mean to discriminate? -
Answers-judge financial institutions based on what you've heard about them
Match each term to its definition. - Answers-relational risk
the risk of harm to the relationship between a company and the stakeholders
inflation risk
the risk that the price of a good or service may increase if an individual waits to buy it
interest rate risk
the risk that interest rates on loans will fluctuate, which affects the cost of borrowing
, personal risk
increasing the opportunity for the chance of injury or loss
income risk
the risk of losing one's job to unexpected circumstances such as a health problem, an
accident, or a job change
The financial system is used to help transfer funds between government agencies and
international markets. - Answers-false
Why is the concept of financial markets important? - Answers-The transfer of funds
between savers and investors (through institutions such as banks and stock markets)
helps drive the nation's economy.
Which of the following is a true statement about investing? (Select all that apply.) -
Answers-It is important for everyone to set an investment objective.
Long-term investments are useful for saving for retirement.
Personal investing is saving money.
Match each term to its definition. - Answers-financial system
system that transfers funds between savers and investors through institutions such as
banks and stock markets
return
profit or loss on an investment
risk
possibility for loss on an investment
diversification
investing in different financial assets to minimize risk
The safer the investment, the higher the return. - Answers-false
Which of the following statements about investments is correct? - Answers-There is no
such thing as a risk-free investment.
You should do research about a company before investing in it. - Answers-true
Which of the following is NOT an item on the checklist for evaluating a potential
investment opportunity? - Answers-Invest outside of the country whenever possible.
Match each type of risk to the correct example. - Answers-personal risk
riding your bicycle on a busy street
relational risk
EXERCISE WITH ANSWERS.
Who said the quote, "Men often oppose a thing merely because they have had no
agency in planning it, or because it may have been planned by those whom they
dislike"? - Answers-Alexander Hamilton
All careers in finance have to deal with the management of assets. - Answers-true
The Constitution directly states that Congress has the authority to create a national
bank - Answers-false
What was currency like in the United States before Congress created national banks
and a national system of currency in 1863? - Answers-Each state had its own currency.
Which of the following characteristics applies to the financial career of accountant?
(Select all that apply.) - Answers-An accountant is a qualified professional.
An accountant deals with financial records and reports.
A financial planner is __________. - Answers-a qualified professional who helps
individuals and businesses meet long-term financial goals
A tax attorney is a qualified professional who is knowledgeable about tax law. -
Answers-true
Some people in the United States were opposed to having a central bank because they
thought it would not be powerful enough to effectively handle their finances. - Answers-
false
Being financially literate means that you have the knowledge and understanding to
make informed financial choices. - Answers-true
In the terms of researching financial information, what does it mean to discriminate? -
Answers-judge financial institutions based on what you've heard about them
Match each term to its definition. - Answers-relational risk
the risk of harm to the relationship between a company and the stakeholders
inflation risk
the risk that the price of a good or service may increase if an individual waits to buy it
interest rate risk
the risk that interest rates on loans will fluctuate, which affects the cost of borrowing
, personal risk
increasing the opportunity for the chance of injury or loss
income risk
the risk of losing one's job to unexpected circumstances such as a health problem, an
accident, or a job change
The financial system is used to help transfer funds between government agencies and
international markets. - Answers-false
Why is the concept of financial markets important? - Answers-The transfer of funds
between savers and investors (through institutions such as banks and stock markets)
helps drive the nation's economy.
Which of the following is a true statement about investing? (Select all that apply.) -
Answers-It is important for everyone to set an investment objective.
Long-term investments are useful for saving for retirement.
Personal investing is saving money.
Match each term to its definition. - Answers-financial system
system that transfers funds between savers and investors through institutions such as
banks and stock markets
return
profit or loss on an investment
risk
possibility for loss on an investment
diversification
investing in different financial assets to minimize risk
The safer the investment, the higher the return. - Answers-false
Which of the following statements about investments is correct? - Answers-There is no
such thing as a risk-free investment.
You should do research about a company before investing in it. - Answers-true
Which of the following is NOT an item on the checklist for evaluating a potential
investment opportunity? - Answers-Invest outside of the country whenever possible.
Match each type of risk to the correct example. - Answers-personal risk
riding your bicycle on a busy street
relational risk
