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WorksheetsPersonal Finance Quiz Review
Total questions: 20
Worksheet time: 20mins
Paying your bills on time will impact your credit score.
True
False
A personal loan is not a consumer loan used to finance the purchase of a house.
False
True
A benefit of insurance is that it does not help cover unexpected expenses.
True
False
IRA accounts do not allow you to save money for retirement in a tax-advantaged way.
False
True
An advantage of renting a home is the very low upfront costs.
True
False
What do we call a loan used to buy a vehicle?
Mortgage
Personal Loan
Auto Loan
Credit Card
All of the following are benefits of budgeting except:
It increases impulse buying
It increases your debt
None of these are benefits of budgeting
It does not allow you to make long term plans
A debit card allows you to withdraw cash from which type of account via a machine?
Checking
IRA
Merchant
Credit
Which of the following is a disadvantage of renting?
You don't build up equity
You can move on a relatively short notice
You are not responsible for maintenance and upkeep
Much less start-up cash needed
All of the following are disadvantages of renting a home as opposed to buying, except:
Usually there is less living space and privacy
You don't build equity in the property
You can't change the property as you wish
You have flexibility if you decide to move
Which of the following is an advantage of buying a new car versus a used car?
it is cheaper
less likely to have mechanical problems
build up less equity in the car
there is less likely to be a longer warranty
What is one pitfall of credit cards?
Paying them off too fast will not build credit.
Careless credit card use could cause a stock market crash.
It is too easy to get credit cards and accumulate high debt from over use.
Paying more than the minimum balance every month will cause you to spend more money in the long run.
What is one way to ruin your credit score?
Pay as little interest as you can.
Pay all your bills on time.
Open few different credit card accounts and use them as little as you can.
Don't pay any of your bills on-time.
Which below is a characteristic of a low-risk borrower?
Credit score above 740
High debt
Doesn't pay bills on time
Unusual employment status
Which of these is not the purpose of a credit score?
Helps determine interest rates for consumers.
Lenders use it to evaluate the probability that an individual will repay loans.
None of the above.
Depicts a consumer’s creditworthiness
Which below is NOT a category used to determine your credit score?
Payment history
Past (12+ or longer) activity
Length of credit history
Utilization
What is the difference between a secured consumer loan and an unsecured consumer loan?
Secured loans grant the borrower less amounts of money than an unsecured loan.
Unsecured consumer loans offer a longer repayment period than secured consumer loans.
Lenders face a greater risks with secured loans.
Secured loans are backed by collateral (assets)
Which below is not a benefit of filing for bankruptcy?
Huge drop in credit score
Can stop collection effort
Can help with problems arising from sudden or unexpected catastrophe
Can lower payments
Which below is a not a step in starting a savings plan?
Open a credit card account
Set up a budget.
Open one or more savings accounts.
Gradually increase how much you save.
What percent of your income is recommended to set aside for retirement savings?
5%
10%
20%
15%
