Personal Finance Standards Quiz

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

• It is generally recommended to save at least 20% of your income each month.

• Save 10% of your income each month

• Save 5% of your income each month

• Save 50% of your income each month

What is the purpose of a credit score?

• To determine a person's favorite color

• The purpose of a credit score is to assess an individual's creditworthiness and likelihood of repaying debts.

• To assess a person's cooking skills

• To predict a person's shoe size

What is the recommended debt-to-income ratio?

• The recommended debt-to-income ratio is typically 50% or higher.

• The recommended debt-to-income ratio is typically 75% or higher.

• The recommended debt-to-income ratio is typically 36% or lower.

• The recommended debt-to-income ratio is typically 25% or lower.

What is the purpose of an insurance deductible?

• The purpose of an insurance deductible is to cover the entire cost of a claim

• The purpose of an insurance deductible is to discourage people from purchasing insurance

• The purpose of an insurance deductible is to make the insurance company more profitable

• The purpose of an insurance deductible is to share the risk between the insurance company and the policyholder, and to discourage filing of small claims.

What is the deadline for filing federal income taxes?

• March 15th

• April 15th

• June 15th

• May 15th

Which type of insurance provides coverage for damage to your car?

• Health insurance

• Car insurance

• Home insurance

• Life insurance

What is the purpose of a beneficiary designation?

• To choose the investment options for a retirement account

• To determine the interest rate of a retirement account

• To decide the color of the life insurance policy

• To specify who will receive the assets of a retirement account or life insurance policy upon the account holder's or policyholder's death.

This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.

• compound
• sinking
• annual

Cost of credit expressed as a yearly percentage 

• Mortgage
• Principal
• APR
• Finance company

401(k), IRA, and Roth IRA are all examples of a __________ account.

• Retirement
• College Savings
• Low Interest
• Stock