State Finance Challenge Quiz Bowl Practice Questions

Savings Account John needs to build an emergency savings to cover 3 to 6 months of living expenses. The savings mechanism that would be most appropriate would be?
Financial Responsibility Law State legislation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident?
59 and 1/2 What’s the earliest age that you are able to withdrawal from most retirement accounts without paying a penalty?
Stock If you are less concerned about short-term risk and want the possibility of generating a large, long-term return, what type of investment would you consider?
Certificate of Deposit A savings plan requiring a stated amount to remain on account for a fixed period of time?
$50 If your credit card is stolen and the thief runs up a total debt of $1000, what is the maximum amount that you can be forced to pay according to federal law if you notify the card issuer as soon as you discover it missing?
Budget Deficit A shortfall of revenue from government spending?
Principal The amount of money you place in savings?
Price-Earnings Ratio The price of a share of stock divided by the corporation’s earning per share of stock will give you what?
Bond A promise to repay a company’s, or country’s, debt is what kind of investment?
Medical Payments Coverage Automobile insurance that covers medical expenses for people injured in one’s car or as a pedestrian?
Teaser Rate A low introductory rate on a credit card?
Homeowner’s Insurance Wind damage to your roof would be covered by what type of insurance policy?
Depreciation A loss in value as an assets get older is called?
A Rollover A tax free transfer of cash or other property from one retirement plan to another is called?
65 and Older Medicare is a health insurance plan for individuals who are how old?
Certificate of Coverage A document issued to a member of of a group health insurance plan showing evidence of participation in insurance?
Bodily Injury Liability Coverage for the risk of financial loss due to legal expenses, medical costs, lost wages, and other expenses associated with injuries caused by an automobile accident for which the insured was responsible?
Pre-existing Condition Any illness or health condition for which you have received medical advice or treatment during the six months prior to obtaining health care?
Malpractice Insurance The liability insurance that all physicians and most other medical providers must carry?
Liquidity How quickly an asset can be converted to cash?
Municipal Bond funds that invest in bonds issued by state governments and municipalities?
Liability Legal responsibility for the financial cost of another person’s losses or injuries?
Treasuries Debt obligations backed by the full faith and credit of the U.S government?
Open-End Fund A mutual fund whose shares are issued and redeemed by the investment company at the request of investors?
Discount A bond that is selling for less than face value?
Uninsured Motorist’s Protection Automobile insurance coverage for the cost of injuries to a person and members of his or her family caused a drive with inadequate insurance or by a hit and run driver?
Home Equity Lone Loan based on the current market value of a home less than the amount still owed on the mortgage?
Credit Bureau A reporting agency that assembles credit and other information about consumers?
Premium A bond that is selling for more than face value?
Rate of Return Earnings on savings can be measured by?
Debit Card Electronically subtracts the amount of a purchase from the buyer’s account at the moment the purchase is made?
Federal Deposit Insurance Corporation What does FDIC stand for?
Junk Bonds High yield, non-investment graded bonds?
Budget Surplus An excess of tax revenue over government spending?
Fair Credit Reporting Act Regulates the use of credit reports, requires the deletion of obsolete information, gives consumers access to their files, and the right to have erroneous data corrected?
Annuity A contract that provides income for life?
Net Asset Value The current market value of securities contained in the mutual funds’ portfolio minus the mutual funds’ liabilities?
Credit Line The amount of money a bank or other business is willing to extend to the borrower?
Direct Investment Investment in which the investor holds legal title to the property?
IRA (Individual Retirement Account) A special account in which the employee sets aside a portion of his or her income; taxes are not paid on the principal or interest until money is withdrawn from the account?
Estate Tax A federal tax on the right of a deceased person to transfer property and life insurance at death?
Collective Bargaining The process by which unions and firms agree on the terms of employment?
Negligence Failure to take ordinary or reasonable care in a situation?
Closed-End Fund A fund whose shares are issued by an investment company only when the fund is organized?
Compounding The accumulation of moth in a bank account, where the interest earned remains in the account to earn additional interest?
Corporate Bonds Debt issued by a corporation to fund expansion, modernize, cover expenses, and finance other activities are called?
Preferred Stock These shareholders have a greater claim to the a company’s assets and earnings. Their dividends must be paid our before dividends to common stockholders, and the shares typically do not have voting rights?
Strict Liability A situation in which a person is held responsible for intentional or unintentional actions?
Overdraft Protection An automatic loan made to checking account customers to cover the amount of a check written in excess of the available balance in the checking book?
Commercial Property Land and building that produce lease or rental income?
Age 67 If a person is born in 1960 or later, in order to receive full social security benefits, at what age must they wait to retire?
Price Earnings Ratio What does this formula calculate?stock price/company’s earnings
Fringe Benefits Benefits that workers receive from their employer in addition to their wage or salary?
Secondary Market A market where previously issued shares are bought and sold?
Interest A periodic change for the use of credit?
Diversification The reduction of risk achieved by replacing a single risk with a large number of smaller unrelated risks?
Special Endorsement A check endorsement allowing you to transfer ownership to someone else?
Revenue Bond A bond that is repaid from the income generated by the project is is designed to finance?
Economics The study of how society manages its scarce resources?
Income Money an individual receives from earnings or other resources?
Checking Account Deposits in a bank allowing the depositor to make withdrawals by issuing a check?
Primary Market (IPO-Initial Public Offering) A market where new securities are issued directly to shareholders?
Line Of Credit The dollar amount, which may or not be borrowed, that a lender makes available to the borrower?
Income Tax A tax levied on one’s earnings?

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