Paxton Patterson Personal Finance Quiz

What is the purpose of a savings account?

• To withdraw money easily and quickly.

• To invest in stocks and bonds.

• To store and grow money over time while earning interest.

• To pay bills and make purchases.

Which of the following is an example of an investment?

• stocks or bonds

• real estate

• credit card

• car loan

What is a credit score used for?

• To assess creditworthiness and ability to repay debts.

• To determine eligibility for government benefits.

• To evaluate job applicants.

• To calculate insurance premiums.

What is the purpose of filing taxes?

• To support government programs

• To avoid penalties

• To receive a tax refund

• To report income and pay taxes

Which type of insurance protects your home from fire and theft?

• Auto insurance

• Health insurance

• Renters insurance

• Homeowners insurance

What is the recommended percentage of income to save each month?

• 20%

• 50%

• 30%

• 10%

Which of the following is a low-risk investment?

• Government bonds

• Cryptocurrency

• Stocks

• Savings account

What is the maximum amount of money you can contribute to a Roth IRA in 2021?

• $6,000

• $10,000

• $7,000

• $5,000

What is the purpose of a deductible in an insurance policy?

• The purpose of a deductible in an insurance policy is to reduce the number of small claims and prevent policyholders from making frivolous claims.

• The purpose of a deductible in an insurance policy is to make the insurance company more profitable by denying claims.

• The purpose of a deductible in an insurance policy is to provide additional coverage for policyholders.

• The purpose of a deductible in an insurance policy is to increase the number of small claims and encourage policyholders to make frivolous claims.

What is the penalty for not having health insurance under the Affordable Care Act?

• Health insurance subsidy

• Affordable Care Act waiver

• Individual shared responsibility payment

• Healthcare exemption