Basics of Personal Finance Quiz

David received his first paycheck from his new job. What is the term for the money he earned?

• Debt

• Income

• Expense

• Liability

Kai is planning his monthly budget. Which of the following is a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

Rohan borrowed some money to buy a new laptop. What is the term for the amount of money he owes to others?

• Asset

• Income

• Debt

• Savings

Mia is reviewing her monthly expenses. Which of the following is an example of a variable expense?

• Mortgage payment

• Utility bill

• Car insurance

• Subscription service

Ava wants to calculate the simple interest on her savings. What is the formula to calculate simple interest?

Rohan wants to set aside some money for future use. What is the term for this?

• Investment

• Savings

• Loan

• Credit

Benjamin is reviewing his finances. Which of the following is considered an asset?

• Credit card debt

• Car

• Monthly rent

• Utility bill

Avery borrowed money from the bank. What is the term for the cost of borrowing this money?

• Principal

• Interest

• Dividend

• Capital

Liam is trying to manage his finances better. Which of the following is a benefit of budgeting?

• Increases debt

• Helps track expenses

• Reduces income

• Increases spending

Avery borrowed some money to start a small business. What is the term for the original amount of money borrowed?

• Interest

• Principal

• Dividend

• Profit