Test your knowledge with these top questions!
What is the primary purpose of a credit freeze with major bureaus?
A credit freeze restricts access to your credit report, preventing fraudsters from opening new unauthorized loans or credit cards.
In personal investing, what term describes a sudden, severe market-wide price drop?
A market crash is a rapid, double-digit percentage drop across major stock indices, often triggered by panic selling or economic shocks.
Which US Treasury security adjusts its principal value with inflation?
Treasury Inflation-Protected Securities (TIPS) adjust their principal value based on the Consumer Price Index to protect purchasing power.
What does an insurance "deductible" represent for a policyholder?
A deductible is the preset amount the insured person must pay before the insurance company begins covering the remaining costs.
Which expense ratio most affects housing affordability?
Lenders use debt-to-income to gauge repayment capacity.
What does diversification do for an investment portfolio?
Spreading across assets smooths volatility.
What does compound interest earn interest on?
Compounding makes balances grow faster over time.
Which budgeting method splits income into needs, wants, and savings?
The 50/30/20 rule allocates 50% to needs, 30% to wants, 20% to savings.
Which ratio compares credit used to credit available?
Utilization below 30% signals responsible credit use.
Which protection lets you check your US credit report for errors annually?
Federal law provides a free report every 12 months via AnnualCreditReport.com.