Chapter 1 Personal Finance Quiz

What is the definition of a consumer?

• A person who sells goods and services for personal use.

• A person who purchases goods and services for personal use.

• A person who saves money for future use.

• A person who invests in financial markets.

Which term describes the ability to obtain goods or services before payment, based on trust?

• Debt

• Loan

• Credit

• Income

What is the synonym for 'debt'?

• Financial standing

• Obligation

• Investment

• Income

What does financial literacy involve?

• Understanding and using financial skills for budgeting and investing.

• The process of saving money for future use.

• The action of spending money on goods and services.

• The ability to lend money to others.

What is the definition of 'interest' in financial terms?

• Money received from selling goods.

• Money paid regularly for the use of money lent or delaying repayment of a debt.

• Money saved for future use.

• Money spent on services.

Which of the following is a synonym for 'investment'?

• Expenditure

• Capital

• Expense

• Income

What is the definition of "Net Worth"?

• The total assets minus total liabilities of an individual or company.

• Occurring once every year.

• The object of a person's ambition or effort.

• A widely held but false belief or idea.

Which term describes something that occurs once every year?

• Net Worth

• Annual

• Goals

• Myths

What is the meaning of "Goals"?

• The total assets minus total liabilities of an individual or company.

• Occurring once every year.

• The object of a person's ambition or effort; an aim or desired result.

• A widely held but false belief or idea.

What does the term "Myths" refer to?

• The total assets minus total liabilities of an individual or company.

• Occurring once every year.

• The object of a person's ambition or effort.

• A widely held but false belief or idea.