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WorksheetsMy personal finance questions quiz
Total questions: 39
Worksheet time: 10hrs 45mins
____ is the cost of a good or service.
a. Price
b. Cost
c. Expense
d. Budget
_____ is the payment received for work or services performed.
a. Cash
b. Income
c. Wages
d. Money
Which type of bank account typically offers no interest?
a. Savings
b. Money market
c. Certificate of Deposit
d. Checking
With each house payment, an individual gets closer to owning the home. This is known as building what?
a. Credit
b. Interest
c. Equity
d. Principal
An initial payment made when something is bought on credit.
a. asset
b. down payment
c. balloon payment
d. insurance premium
Which of the following are warning signs that your finances may be in trouble?
a. having barely enough to pay off credit card bills each month, cannot buy a car, eating a lot of cheap pizza.
b. using savings for routine items, missed deadlines on bills, not buying important items.
c. not enough to go to eat out once a week, not enough to buy new clothes, not enough to buy new electronics.
d. need to ask to borrow more money, need to work more hours, need new roommates.
Which of the following is NOT a need?
a. Snacks
b. Towels
c. Toiletries
d. Cleaning Supplies
Which of the following is not a type of pay?
a. Holiday
b. Sick day
c. 401k
d. Overtime
A deduction is money taken out of the paycheck for:
a. insurance and state taxes
b. the retirement plan
c. employee benefits and taxes
d. Overtime
The amount of money an employee receives after deductions is called the take-home pay or:
a. year to date pay
b. gross pay
c. taxable income
net pay
A live-in 60-year-old uncle, who makes $4,000 a year, cannot be a dependent:
a. because he gets Medicaid
b. because he's older than you
c. because he is not immediate family
d. because he makes more than $3,900
What happens if you do not pay a credit card bill on time?
a. Use your debit card
b. Declare bankruptcy
c. Pay your interest
d. You go into debt
What is the riskiest type of bond?
a. Savings
b. Municipal
c. Corporate
Which bank account earns you the most interest?
a. Certificate of deposit
b. Savings
c. Checking
To measure the stock market as a whole people look to _____.
a. Individual stocks
b. Unemployment rate
c. Dow Jones
d. Stockbrokers
Amount of money originally borrowed?
a. Annual percentage rate (APR)
b. Mortgage
c. Principal
d. Finance company
What will you pay back if you borrow money?
a. interest and finances charges
b. principal only
c. interest only
d. principal + interest
A savings account with a specific time period
a. Savings Account
b. Bond
c. Checking
d. Certificate of Deposit (CD)
The agreement to receive cash, goods, and services now and pay for them later.
a. Late Fee
b. Credit
c. Check
d. Debit
Which of the following best describes what dividends are?
a. The increased value of a stock
b. A periodic payment to the owners of a stock
c. A reward for selecting goos stocks
Buying stock through mutual funds is less risky than buying individual small pieces of many companies at a time because
a. you diversify your risk by buying small pieces of many companies at a time
b. inflation is less likely to erode your investment
Doctor's Bill
a. Variable Expense
b. Fixed Expense
Which of the following statements is FALSE?
a. A cash flow statement summarizes all of the income and outgo (spending ) over a certain time period
b. A budget is a written plan for saving and spending
c. A budget is meant to summarize the saving and spending that has taken place over the past year
d. The cash flow is reflective of what has already taken place
Key components of financial planning include all of the following except:
a. Write out a detailed plan for accomplishing your goals
b. Replace money myths with money truths
c. Allow your financial planner to make all of your major money decisions
d. Regularly monitor and reassess your financial plan
The credit card bill takes longer to pay off due to interest rates if you:
a. pay half your bill each month
b. only make the minimum monthly payment
c. stop using the card
d. pay the balance
With a credit score in the 300 to 600 range (select all that apply):
a. getting a credit card loan should be piece of cake
b. you'll need to work hard to improve your score
c. getting a credit card will be a problem
d. you will need to pay more for credit (if you get it at all).
If you sign for a debit card purchase, the funds clear your account faster
a. True
b. False
The maximum allowable APR ( Average Percentage Rate ) on credit card is?
a. 7.5 %
b. 15.24 %
c. 25. 67 %
d. 29. 99 %
Credit card companies make money by :
a. through distribution of goods
b. charging a fee every time the card is used
c. charging interest on purchases
d. bank loans
Which would be wise to save for?
a. Birthday
b. Shopping
c. Car Payment
d. College
Why is the savings rule needed for most people?
a. To learn to avoid debt
b. Only save money and spend money
c. To learn to save money for the future
d. To learn to spend money without thinking
Which of the following is not a benefit of understanding your own money personality?
a. Recognizing who you allows you the opportunity to grow and learn
b. Once you know your financial personality, you can develop a financial plan that works for you
c. Knowing your money personality, allows you to excuse excessive spending because it is simply part of your nature
d. None of the above
" Everyone has their own wants that they desire but it's not actually needed to survive." Which of the following is the WANT's of an individual?
a. Going on vacation
b. Shopping due to promotion
c. Buy expensive electronic gadget like a smartwatch
d. Digital and streaming services like Netflix
In case unforeseen event occurs like car maintenance, how many months should an individual have in an emergency savings?
a. At least three months of emergency savings
b. At least ten months of emergency savings
c. All answers are correct
d. At least six months of emergency savings
According to uses of the 50/30/20 rule of thumb for budgeting, which is the uses of " track your expenses each month, and make changes when needed, in order to stick to your sending thresholds going forward?"
a. Follow your budget
b. Calculate your monthly income
c. Plan your budget around these numbers
d. Calculate a spending threshold for each category
According to the 50/30/20 rule of thumb for budgeting, why do we need to calculate monthly income?
a. To track expenses each month
b. To find out how much is your after-tax income
To see how much you should spend and allocate in each category
d. To think of these three categories as "buckets'' that you can fill with monthly expenses
Which of the following is not a component of a financial plan?
a. A plan to manage risk
b. A plan for investing
c.A plan to pay utility bills
d. A plan for retirement
Your net worth is the difference between your
a. assets and liabilities
b. payments and income
c. cash inflows and outflows
d. liquid assets and long-term assets
Consumers tend to spend the most on which category of goods?
a. food
b. entertainment
c. housing
d. clothing
