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WorksheetsFinancial Planning Quiz
Total questions: 28
Worksheet time: 14mins
Which of the following is an example of a SMART financial goal?
Save for college.
Save $5,000 in 12 months by depositing $417 per month.
Become wealthy.
Spend less.
What is the role of insurance in financial planning?
To eliminate all financial risks
To provide protection against unexpected financial losses
To increase monthly income
To replace emergency funds
Which of the following expenses is typically considered fixed?
Entertainment
Rent
Groceries
Utilities
What is a deductible in an insurance policy?
The total cost of the insurance premium
The amount the insured pays before the insurer covers a claim
The total payout of the insurance policy
The amount the insurer pays annually
What is an insurance premium?
The monthly amount paid by an employer
The one-time cost of an insurance policy
The cost of an insurance policy, usually paid monthly
The amount set aside for claims
What is a premium in an insurance policy?
The deductible paid annually
The monthly or annual cost of the policy
The total coverage amount
The claim paid by the insurer
What is the purpose of a balance sheet?
To show monthly expenses
To compare income versus expenses
To provide a snapshot of assets, liabilities, and net worth
To track investment performance
What is collision coverage?
Coverage for theft
Coverage for damage to your car from a collision
Coverage for the policyholder’s car damage from collisions
Coverage for damages caused by theft
What does "liability" mean in an auto insurance policy?
Protection against theft
Coverage for damages to your own vehicle
Protection against damages caused to others
Coverage for medical expenses only
Which of the following is a type of life insurance?
Term life insurance
Whole life insurance
Universal life insurance
All of the above
Which of the following factors can impact the cost of homeowners insurance?
The location of the home
The home's age and construction materials
The policyholder's credit score
All of the above
How does life insurance benefit families financially?
It provides immediate financial support for funeral expenses.
It replaces lost income for dependents.
It can pay off mortgages or other debts.
All of the above
What does comprehensive auto insurance cover?
Damages to your car caused by non-collision events such as theft, fire, or natural disasters
Damages to your car caused by a collision with another vehicle
Liability for damages caused to others
Medical expenses for the policyholder
Saving for college, buying a home, and retirement are all
short-term goals.
intermediate goals.
Long term goal
Mr. Weir's worst nightmares
Which of these is a true S.M.A.R.T. financial goal?
I will save $20 each money for 3 months to buy a new game.
I will try to learn more about how to play the piano.
Learn how to do taxes
I will invest for retirement every year.
How can an investor limit investment volatility while earning a return within their risk tolerance.
Invest 100% in 1 stock.
Diversify the investment portfolio between stocks and bonds, and between investment sectors.
Invest 100% in 1 market sector.
Keep all money in bank accounts.
To prepare a budget, a business must be able to identify and predict the amount of each source of income and each type of expense.
True
False
This process is used to plan for upcoming revenues and expenses.
Budgeting
Fundraising
IPO
Funding Round A
Type of insurance that covers if you are at fault.
Health
Life
Disability
Liability
Insurance that covers car accidents
Life Insurance
Disability Insurance
Auto Insurance
Health Insurance
Property Insurance
The risks and events that are protected is your
Coverage
Premium
Claim
Protection against a specific kind of loss
Deductible
Coverage
Premium
Risk
Type of insurance that covers your home whether you own or rent.
Life Insurance
Disability Insurance
Auto Insurance
Health Insurance
Property Insurance
The amount that McDonald’s has to pay before insurance covers the rest is referred to as what?
claim
liability
premium
deductible
Someone breaks into your apartment and steals your iPad.
Homeowners Insurance
Liability Insurance
Comprehensive Insurance
Renters Insurance
Evelyn is reviewing her credit card statement and notices a term she doesn't understand. What does APR stand for?
Annual Payment Rate
Annual Percentage Rate
Added Payment Requirement
Average Payment Rate
Aiden has a credit card and he only makes the minimum payment each month. What happens?
You pay off the balance faster
You avoid all interest
You stay in debt longer
Your credit score improves
Abigail is trying to manage her finances wisely. Which choice shows responsible credit use?
Skipping payments to save money
Using only part of your credit limit
Opening multiple new cards at once
Only paying minimum payments
