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WorksheetsPersonal Finance Managment
Total questions: 15
Worksheet time: 8mins
What is the correct formula for personal finance management?
income-expenses=savings
expenses=income + borrowing
income-savings=expenses
income-savings=net income
which one is a "want"
Food
Shelter
Dress
villa
Which one is the high-risk investment?
Savings Account
Stock market
Real estate
Fixed deposit
What does the term "compounding" refer to about investments?
Adding money to an investment regularly
Earning interest on both the initial amount and the accumulated interest
Reducing the amount of debt owed
Selling an investment at a profit
What is inflation?
What is the purpose of a budget?
To track expenses after they occur
To restrict spending
To allocate income and plan expenses
To determine creditworthiness
What is the purpose of diversification in an investment portfolio?
To minimize taxes
To maximize returns
To reduce risk
To increase liquidity
Which of the following is an example of a fixed expense?
Groceries
Entertainment
Mortgage payment
Dining out
What is an annual fee on a credit card?
A one-time fee to open the credit card account
A fee charged every year for using the credit card
A fee for late payment
A fee for making cash advances
Which of the following factors does NOT impact your credit score?
Payment history
Length of credit history
Signing as a gurantor
Age or marital status
Which of the following is a potential drawback of carrying a high credit card balance?
Building a positive credit history
Earning cashback rewards
Accruing high interest charges
Qualifying for a mortgage loan
Which of the following is considered a variable expense?
Loan repayment
Utility bills
Insurance premium
Rent payment
What is the primary benefit of having an emergency fund?
To invest in stocks
To save for retirement
To cover unexpected expenses
To pay off credit card debt
What does the term "liquidity" refer to in finance?
The total value of investments
The amount of debt a person has
The interest rate on loans
The ability to convert assets into cash quickly
What is a debt snowball?
Prioritize paying off debts with the highest interest rates first.
Consolidate all debts into a single loan for easier management.
Start by paying off the smallest debts first and then work your way up to larger debts.
Ignore paying off debts and focus on building an emergency fund instead.
