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Chapter 14: Personal Finance Quiz
Test your knowledge of the personal finance chapter material!
1 / 10
True or false: Economists do not declare the market “recovered” until all consumers are past the financial crisis.
Even years after a financial crisis has transpired, many consumers feel that the recovery has passed them by when economists declare the market “recovered.” Read more on page 146.
Correct! Even years after a financial crisis has transpired, many consumers feel that the recovery has passed them by when economists declare the market “recovered.”
2 / 10
Why is it a good idea to meet financial professionals in your community?
Answer can be found on page 149.
Correct!
3 / 10
What is the main reason someone might want to diversify their investments?
Answer can be found on page 153.
Correct! The rationale behind diversification is that different types of investments will pose a lower risk than any one investment that you hold, so if anything happens to one, your other investments are safe.
4 / 10
What do you call an expense that is deducted from the adjusted gross income, reducing your taxable income?
5 / 10
If interest rates fall, what is likely to happen to bond prices?
Answer can be found on page 152.
Correct! Bonds are highly sensitive to interest rates, so bond prices move inversely to interest rates.
6 / 10
True or false: For the majority of Americans, paycheck increases more than cover the increased costs brought on by the rate of inflation.
Read more on page 146.
7 / 10
True or false: You can write about how tax changes will affect your readers.
It’s best to leave individual tax planning to tax advisers, but that doesn’t mean you can’t write stories about how tax changes will affect your readers. Read more on page 147.
Correct! It’s best to leave individual tax planning to tax advisers, but that doesn’t mean you can’t write stories about how tax changes will affect your readers.
8 / 10
True or false: You can accurately predict the direction of interest rates and financial markets.
Read more on page 151.
9 / 10
What does AGI stand for?
Correct! This is used to determine your taxable income.
10 / 10
Who is required to put the client’s interests ahead of their own at all times when providing personal finance advice?
Answer can be found on page 148.
Your score is
The average score is 90%
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