Financial Literacy and College Prep

Question 1

Which type of account is typically used for everyday transactions?

Answer 1

Checking account

Question 2

What type of interest is calculated on both the initial principal and the accumulated interest from previous periods?

Answer 2

Compound interest

Question 3

Which numerical figure represents an individual’s creditworthiness?

Answer 3

Credit score

Question 4

What financial product allows you to borrow money up to a certain limit and pay it back with interest over time?

Answer 4

Credit card

Question 5

How many months’ worth of expenses are typically recommended to save in an emergency fund?

Answer 5

3-6 months

Question 6

What type of loan interest rate remains the same throughout the life of the loan?

Answer 6

Fixed interest rate

Question 7

What term describes the action of allocating resources, especially in terms of capital investment?

Answer 7

Investing

Question 8

What is a retirement savings plan offered by many employers in the United States?

Answer 8

401(k)

Question 9

What investment strategy involves spreading out investments to reduce risk?

Answer 9

Diversification

Question 10

What term describes money earned from investments?

Answer 10

Returns

Question 11

What type of account typically offers the highest interest rates?

Answer 11

Savings

Question 12

What is the term for the fee charged for borrowing money?

Answer 12

Interest

Question 13

What is the name for a loan that is backed by collateral?

Answer 13

Secured

Question 14

What is the term for the process of repaying a loan over time?

Answer 14

Amortization

Question 15

What is the name for the price of a stock or bond at a specific moment?

Answer 15

Market Price

Question 16

What is the term for the difference between a company’s assets and liabilities?

Answer 16

Net Worth

Question 17

What is the name for a sudden, significant drop in the value of investments?

Answer 17

Crash

Question 18

What is the term for the process of converting assets into cash?

Answer 18

Liquidation

Question 19

What is the name for a type of investment that represents ownership in a company?

Answer 19

Stock

Question 20

How many safety schools should you typically apply to?

Answer 20

At least 2

Question 21

What type of college is generally the most affordable option?

Answer 21

Community college

Question 22

What is the common application deadline for many colleges known as?

Answer 22

Regular decision

Question 23

What type of admission decision requires you to attend the college if you get accepted?

Answer 23

Early decision

Question 24

Which exam is typically required for admission to many U.S. colleges?

Answer 24

SAT or ACT

Question 25

What should you request from your teachers to accompany your college applications?

Answer 25

Letters of recommendation

Question 26

What is the term for the office that helps students with their financial aid options in college?

Answer 26

Financial aid office

Question 27

When should you ideally start visiting potential colleges?

Answer 27

Junior year of high school

Question 28

What is a year taken off between high school and college called?

Answer 28

A gap year

Question 29

What is one of the first steps in the college application process?

Answer 29

Researching and choosing which colleges to apply to

Question 30

What term describes the process of exploring various career options and their associated educational paths?

Answer 30

Career Exploration

Question 31

What type of financial aid does not need to be repaid?

Answer 31

Grants

Question 32

What is the term for the standardized test that assesses English language proficiency for non-native English speakers?

Answer 32

TOEFL or Test of English as a Foreign Language

Question 33

What organization provides federal student loans to eligible students?

Answer 33

FAFSA (Free Application for Federal Student Aid)

Question 34

What term describes a program that allows students to earn college credit while still in high school?

Answer 34

Dual Enrollment

Question 35

What term describes the process by which colleges consider an applicant's extracurricular activities, essays, and letters of recommendation, in addition to grades and test scores?

Answer 35

Holistic Admissions

Question 36

What type of financial aid requires students to work in exchange for tuition reimbursement?

Answer 36

Work Study

Question 37

What term describes the maximum amount of money a student can borrow in federal student loans?

Answer 37

Loan Limit

Question 38

What application system is commonly used for undergraduate admissions by the University of California (UC) campuses?

Answer 38

UC Application

Question 39

What alternative application system is commonly utilized by Texas schools as an alternative to the Common Application?

Answer 39

ApplyTexas Application