Speedrun your financial education Click Here! 1. Why does a dollar today have more value than a dollar tomorrow? Because it can earn interest over time. Due to inflation increasing purchasing power. Because money loses interest if invested. 2. Which type of interest grows faster due to "interest on interest"? Simple Interest Compound Interest Negative Interest 3. What does net worth measure? Total income earned monthly. Difference between assets and liabilities. Total debts owed to creditors. 4. What is the recommended amount for an emergency fund? One month's worth of total income. Three to six months of essential living expenses. The full value of all your assets. 5. Which is an example of good debt? Credit card debt for vacation shopping. Student loans for education. Payday loans with high interest. 6. When budgeting under tight finances, what is the primary goal? Achieving a perfect, balanced budget. Cover essentials and avoid deeper financial trouble. Spend on non-essentials to maintain lifestyle. 7. What is the purpose of a monthly money check-in? To review income, expenses, and adjust goals. To plan a large vacation. To ignore spending habits. 8. Which best describes investing? Putting money in assets like stocks and bonds for growth. Saving money in a jar under your mattress. Spending all your savings on short-term wants. 9. How do stocks and bonds differ in investing? Stocks offer ownership and growth, bonds offer stability and interest. Bonds are more volatile than stocks. Stocks pay fixed interest, bonds don’t. 10. What is the biggest risk of trading derivatives like options or CFDs? Low volatility leading to small gains. Leverage causing large losses that can exceed your investment. Guaranteed profits with no risk. See Your Result 🚀 Check Out Our Course!
