NS4-U9 - Financial Wisdom Quiz 105

Select the correct definition for the term budget.

• The total amount of bills you owe that you cannot pay

• The amount of money that is available for a particular purpose

• The total amount of bills you already paid

• The amount of money that you want to have

What does the percentage 70 represent in the 70-20-10 Saving Rule?

• Debt payments

• Financial goals

• Emergency expenses

• Living expenses

How do you figure your net income?

• Net pay = Gross pay - Deductions

• Net pay = Gross Pay + Taxes

• Net pay = Gross Pay + Deductions

• Net pay = Gross pay

What credit score is considered a good credit rating?

• 700

• 550

• 400

• 350

What does the term “principle” mean in regards to financial planning?

• To put in a bank for safekeeping

• The percentage charged for the money borrowed

• The original amount borrowed or invested

• A record of an individual’s borrowing or repaying

What is the difference between a grant and a loan?

• A grant is a free gift, and a loan is borrowed and must be repaid.

• A grant is borrowed and must be repaid, and a loan is a free gift.

• A grant is money from a relative and a loan is a free gift.

• There is no difference, they are both the same.

Savings accounts pay interest.

• True

• False

The Income Tax Form 1040 must be filed by ____________.

• Jan 31

• March 1

• June 1

• April 15

With the 70-20-10 saving rule, what percentage should be planned to be used for your living expenses?

• 70

• 20

• 10

• 5

With the 70-20-10 saving rule, what percentage should be planned to be used for your retirement?

• 70

• 20

• 10

• 5