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Creating a budget Quiz

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

When choosing your financial plan , set _________ or the amount above which should not spend if you are to meet your financial goals

a)

risk limits

b)

finance limits

c)

spending limits

d)

investment limits

2.

Which of the following is an advantage of understanding personal finance:

a)

it will make you wealthy

b)

it will help you become a financial advisor

c)

it will help you make a good financial

d)

all of the above

3.

Which of the following terms means access to funds to cover a short-term cash need:

a)

budget

b)

liquidity

c)

financing

d)

assets

4.

When setting an intermediate financial plan , it should cover the following time frame :

a)

0-1 years

b)

1-5 years

c)

5-10 years

d)

10 + years

5.

Which question should you ask yourself when establishing your financial goals?

a)

what income level should you be making?

b)

what is your standard of living?

c)

what do you want money for?

d)

how important is money to you?

6.

Which of the following provides a safer method to achieve your goals?

a)

savings account

b)

mutual fund

c)

stocks

d)

bonds

7.

How often should you revise your financial plan?

a)

monthly

b)

quarterly

c)

yearly

d)

after major life changes

8.

Which of the following is income and should be considered part of your budget?

a)

money received from selling your car

b)

money received as a graduation gift

c)

money from your part-time job

d)

all of the above

9.

Which of the following is an expense?

a)

cell phone bill

b)

mp3 purchases

c)

lunch

d)

all of the above

10.

Why is a personal financial plan important ?

a)

Can make the difference between doing the things you want to do and feeling that you'll never reach your goals

b)

Cannot make a difference between doing the things you do not want to do and not feeling that you'll reach your goals

c)

Can make a difference between doing the things you want to do and feeling that you will not reach your goals.

d)

All of the above

11.

What are the 6 areas for decision making when creating a personal financial plan?

a)

Managing your budget, Managing your liquidity,Financing your large purchases,protecting your assets , investing for the future , investing for retirement

b)

Protecting your assets , investing for the future , investing for retirement Managing your budget, Managing your liquidity, Financing your large purchases

c)

Managing your budget, , investing for retirement Managing your liquidity, Financing your large purchases, protecting your assets , investing for the future

12.

What are the 6 STEPS for developing a personal financial plan?

a)

select the best plan to achieve your goals , evaluate your plan , revise your plan, establish your financial goals, consider your current financial position, identify and evaluate alternatives to achieve your goals ,

b)

establish your financial goals, consider your current financial position, identify and evaluate alternatives to achieve your goals ,evaluate your plan , revise your plan, select the best plan to achieve your goals

c)

identify and evaluate alternatives to achieve your goals , establish your financial goals, consider your current financial position, select the best plan to achieve your goals , evaluate your plan , revise your plan

d)

establish your financial goals, consider your current financial position, identify and evaluate alternatives to achieve your goals , select the best plan to achieve your goals , evaluate your plan , revise your plan

13.

What is a budget , and why is it important?

a)

A budget is a budget. it allows you to make crazy financial choices

b)

A budget is a summary of money. it allows you to make safe choices

c)

a budget is a detailed summary of expected income and expenses during a specific time period. It allows you to make informed financial choices

d)

a budget is a detailed summary of unexpected income and expenses during a specific time period. It allows you to make uninformed financial choices