Economic and Personal Finance Quiz

What is the term for the total value of all goods and services produced within a country in a year?

• Gross Domestic Product (GDP)

• Net National Product (NNP)

• Gross National Income (GNI)

• Consumer Price Index (CPI)

Which of the following is a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

Calculate the simple interest earned on a principal of $500 at an interest rate of 5% per annum for 3 years.

• $50

• $75

• $100

• $125

What is the primary purpose of a budget?

• To track past expenses

• To plan future income and expenses

• To increase savings

• To reduce taxes

• 20%

• 25%

• 30%

• 15%

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

• Mortgage payment

• Utility bill

• Car insurance

• Property tax

What is the formula for calculating compound interest?

If you invest $1,000 in a savings account with an annual interest rate of 4% compounded annually, how much will you have after 2 years?

• $1,080

• $1,081.60

• $1,082.40

• $1,083.20

What is the term for the amount of money borrowed or invested, excluding any interest or dividends?

• Principal

• Interest

• Dividend

• Yield

Which of the following best describes a stock?

• A loan to a company or government

• A share of ownership in a company

• A fixed income investment

• A savings account