Personal Finance Concepts Quizs

What is a key characteristic of a good financial goal?

• is only focused on saving money

• is based on personal feelings

• has a specific time frame

• is flexible and adjustable

What type of benefit allowed the person to buy a new Apple computer after the fire?

• replacement value

• actual cash value

• liability coverage

• deductible

What is a key strategy for saving money to buy a house?

• Investing in stocks

• Taking out a loan

• Following a budget that allows for saving

• Cutting all expenses completely

What are the two main types of life insurance policies mentioned in personal finance?

• Universal and variable life

• Term and accidental death

• Term and whole life (permanent)

• Whole life and health insurance

What is the recommended age to start contributing to a retirement plan?

• At age 40

• At age 30

• When starting a new job

• As young as possible

What is the first step recommended when shopping for life insurance?

• get prices from different companies

• figure out how much is needed

• choose a company based on reputation

• consult a financial advisor

What economic condition is characterized by a decrease in purchasing power and an increase in the cost of goods?

• deflation

• recession

• stagnation

• inflation

Which of the following can help a person lower her personal risk of loss?

• A will.

• Insurance.

• Home ownership.

What is the primary factor to consider when determining the amount of renters insurance coverage needed?

• The average cost of renters insurance in the area

• The length of the rental agreement

• The number of people living in the rental unit

• The dollar value of personal property to be covered by insurance

Which financial product is generally considered to have a higher risk compared to bonds and savings accounts?

• Bonds

• Mutual Funds