Ch 2: Praxis Business: Personal Finance

About This Chapter

Learn the differences between mutual funds, exchange-traded funds, stocks and bonds with the video lessons in this chapter. Instructors cover these topics and more to prepare you for personal finance questions on the Praxis Business Education subject test.

Praxis Business Education: Personal Finance - Chapter Summary

Lessons in this chapter help you explore various types of investment opportunities and financial institutions, so you can excel on the personal finance portion of the Praxis Business Education exam. Topics of discussion cover:

  • Mutual and exchange-traded funds
  • Stocks and bonds
  • Credit management
  • Savings

Use the engaging video lessons, transcripts and self-assessment quizzes included in this chapter to find out what's covered on the Praxis Business Education exam and pinpoint which topics will require additional study before exam day. You can also use these resources to familiarize yourself with how the test's multiple-choice questions are formatted.

Praxis Business Education: Personal Finance Objectives

If you're an aspiring business teacher, passing scores on the Praxis Business Education exam could be required for subject area licensure in your state of residence. Lessons included in this chapter can help you prepare for the test's 18 or so multiple-choice questions assessing your familiarity with accounting and finance. This content domain will ask you to demonstrate your knowledge of such topics as savings, investments and the risks associated with different forms of financing. You'll also need to be familiar with methods for earning and improving credit and managing personal finances. There are 120 multiple-choice questions total, and the exam takes two hours to complete.

6 Lessons in Chapter 2: Praxis Business: Personal Finance
Test your knowledge with a 30-question chapter practice test
What is a Savings Account? - Definition & Types

1. What is a Savings Account? - Definition & Types

A savings account is a bank account for saving money, that can also earn interest at the same time, increasing one's profits. Learn more about savings accounts, how they started, the different types and their definitions, and the reason people choose to invest in such an account.

Investment Opportunities in Mutual Funds and Exchange-Traded Funds

2. Investment Opportunities in Mutual Funds and Exchange-Traded Funds

Two types of investment opportunities are mutual funds and exchange-traded funds (ETFs). Learn from an overview of both types of opportunity and consider the advantages and disadvantages of each.

Investment Opportunities in Stocks and Bonds

3. Investment Opportunities in Stocks and Bonds

A diversified investment portfolio typically contains stocks and bonds, which are financial instruments known as securities. Explore the types of stocks and bonds, how they are purchased and sold, and learn about the risk and possible return on investment opportunities.

Credit & Debt in Personal Finance

4. Credit & Debt in Personal Finance

Credit and debt have a spiraling relationship with specific functions in personal finance. Discover aspects of credit, such as installment credit and revolving credit, and learn how credit use creates debt, debt repayment, and builds credit profiles.

Types of Financial Assets: Money, Stocks & Bonds

5. Types of Financial Assets: Money, Stocks & Bonds

Financial assets are resources owned by people or organizations that have monetary value derived from a contractual claim. Learn more about the three main types of financial assets, such as money, stocks, and bonds.

Institutions of the U.S. Banking System

6. Institutions of the U.S. Banking System

Institutions of the U.S. banking system include several options for businesses and consumers. Explore commercial banks, savings and loan associations, credit unions, and investment banks and discover the characteristics and benefits of each of these institutions.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken
More Exams
There are even more practice exams available in Praxis Business: Personal Finance.

Earning College Credit

Did you know… We have over 220 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Support