Trivia #3

What is the Excel forecasting formula?

• PREDICT(x, known_y's, known_x's)
• ESTIMATE(x, known_y's, known_x's)
• CALCULATE(x, known_y's, known_x's)
• FORECAST(x, known_y's, known_x's)

What does the “50/30/20 rule” in budgeting refer to?

• The 50/30/20 rule suggests spending 50% on entertainment, 30% on groceries, and 20% on rent.
• The 50/30/20 rule is a guideline for investing in stocks, bonds, and real estate.
• The 50/30/20 rule refers to a budgeting method that divides income into 50% needs, 30% wants, and 20% savings/debt.
• The 50/30/20 rule is a method for calculating taxes.

What is a credit score used for?

• A credit score is used to determine employment eligibility.
• A credit score is used to calculate tax returns.
• A credit score is used to assess health insurance premiums.
• A credit score is used to evaluate creditworthiness for loans and credit.

What is the difference between a Roth IRA and a Traditional IRA?

• Roth IRA contributions are made after-tax, allowing tax-free withdrawals; Traditional IRA contributions may be tax-deductible, but withdrawals are taxed.
• Roth IRA contributions are tax-deductible, while Traditional IRA contributions are not.
• Both Roth IRA and Traditional IRA contributions are made before taxes.
• Withdrawals from both types of IRAs are tax-free regardless of contribution type.

What is the purpose of having life insurance?

• To cover medical expenses during illness.
• To accumulate wealth for retirement.
• To pay off credit card debt after the policyholder's death.
• To provide financial security for dependents after the policyholder's death.

What does the term “liability” mean in personal finance?

• A liability refers to a type of investment strategy.
• A liability is an asset that increases wealth.
• A liability is a financial obligation or debt owed by an individual.
• A liability is a savings account with high interest rates.

What is personal financial planning?

• something needed for survival

• something you need to give up for a better option

• a task that someone else performs for you

• arranging to save, spend, and invest money

How can you improve your credit score?

• Open multiple credit cards at once
• Ignore credit card statements
• Max out existing credit limits
• Pay bills on time, reduce debt, avoid new credit inquiries, check for errors.

What was one reason for Red Lobster's financial downfall?

• Endless shrimp.

• Poor marketing strategies.
• Failed Tik Tok campaign.

• High employee turnover rates.

Which one of these is NOT a financial risk management technique?

• Sharing

• Retention

• Avoidance

• Cybersecurity