What's Your Financial IQ?

What's Your Financial IQ?

How knowledgeable are you about finance and money? Take this simple quiz of common financial terms and find out!

published on September 10, 20175 responses 0 4.0★ / 5

A capital gain occurs when a profit is made when selling a stock at a higher price than the price for which it was purchased.

A capital gain occurs when a  profit is made when selling a stock at a higher price than the price for which it was purchased.
True
False

What is an example of earned income?

Income obtained from paper assets (ex. stocks, bonds, mutual funds)
Income obtained from working a job (ex. paycheck)
All of the above

A liability is defined as

Something that takes money out of your pocket
Something that puts money into your pocket

What is passive income?

Income that is earned based on your efforts, (ex. paycheck earned from working a job)
Income that you receive from other sources rather than on your efforts

How would you classify your primary residence?

How would you classify your primary residence?
An asset
A liability
Both--an asset and a liability

What is an asset?

Something that takes money out of your pocket
Something that puts money into your pocket