Understanding Personal Finance Basics

Front

What is the primary purpose of a personal budget?

Back

To plan for future financial goals

Front

Which of the following is a legally binding agreement between two or more parties? A handshake, A contract, A verbal promise, A letter of intent

Back

A contract

Front

What is the main purpose of a will?

Back

To allocate assets after death

Front

Which type of insurance is specifically designed to cover medical expenses?

Back

Health insurance

Front

What is the term for the amount you pay out-of-pocket before your insurance covers the rest?

Back

Deductible

Front

Which of the following is NOT typically included in a personal finance plan? Income, Expenses, Weather forecasts, Savings goals

Back

Weather forecasts

Front

What is the legal term for someone who benefits from a will?

Back

Beneficiary

Front

Which of the following is a common feature of a life insurance policy?
Options:
Coverage for car accidents,
Payment to beneficiaries upon death,
Coverage for home repairs,
Payment for routine medical check-ups

Back

Payment to beneficiaries upon death

Front

What is the primary function of a contract?

Back

To outline terms and conditions

Front

Which of the following is a benefit of having a personal finance plan? Increased stress, Better financial management, Higher taxes, More debt

Back

Better financial management