Personal Finance Vocab Test 1 (1-20) Quiz

What percentage of income is allocated to savings in the 50-30-20 budgeting method?

• 10%

• 50%

• 20%

• 30%

What is an associate degree?

• A degree awarded after 3 years of study

• A degree awarded after 4 years of study

• A degree awarded after 1 year of study

• A degree awarded after 2 years of study

What is the primary purpose of auto insurance?

• To cover home repairs

• To insure life

• To provide health benefits

• To protect against financial loss in the event of an accident or theft

What is a bachelor degree?

• A degree given after 5 years of study

• A degree given after 2 years of study

• A degree given after 3 years of study

• A degree given after 4 years of study

What is a bank?

• A private club

• A for-profit financial institution

• A non-profit organization

• A government agency

Which of the following is NOT a common employee benefit?

• Retirement benefits

• Health insurance

• Company car

• Paid time off

What does bodily injury liability insurance cover?

• Someone else's emergency services and medical care

• Damage to your own car

• Home repairs

• Theft of your vehicle

What is a budget?

• A plan for income and expenses during a set period

• A type of insurance

• A financial institution

• A career path

What is a Certificate Of Deposit (CD)?

• A retirement plan

• An account for daily transactions

• An account for a specified length of time with higher interest rates

• A type of insurance

What is a checking account used for?

• Retirement savings

• Investing in stocks

• Daily transactions and bill payments

• Long-term savings