Finance Review Quiz

What is a budget?

• A plan for how to spend and save money

• A type of bank account

• A loan from a bank

• A credit card

Which of the following is an example of a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

What is the purpose of an emergency fund?

• To pay for vacations

• To cover unexpected expenses

• To invest in stocks

• To buy luxury items

If you earn $50 per week from a part-time job and save 20% of your earnings, how much do you save each week?

• $5

• $10

• $15

• $20

What is interest?

• The amount of money you borrow

• The fee paid for borrowing money

• The total amount of money in your bank account

• The cost of groceries

Which of the following is a good strategy for saving money?

• Spending all your income

• Creating a budget

• Ignoring your expenses

• Using credit cards for all purchases

What is a credit score?

• A measure of your ability to repay loans

• The amount of money in your savings account

• The interest rate on a loan

• The total amount of your debt

If you have a loan with an interest rate of 5% per year, how much interest will you pay on a $1,000 loan after one year?

• $5

• $50

• $100

• $500

What is the main benefit of having a savings account?

• It allows you to write checks

• It earns interest on your deposits

• It provides a credit score

• It allows you to borrow money

Which of the following is a variable expense?

• Mortgage payment

• Car insurance

• Utility bills

• Student loan payment