Worksheets24.25 Personal Finance Final Exam Review
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
What is the primary purpose of creating a budget?
a)
A. To spend more money
b)
B. To plan how to save and spend money
c)
C. To calculate your net worth
d)
D. To increase credit card debt
2.
Which of the following is considered income?
a)
A. Money spent on groceries
b)
B. A paycheck from a job
c)
C. Monthly rent
d)
D. Credit card interest
3.
Why is it important to track expenses?
a)
A. To avoid paying bills
b)
B. To stay within a budget
c)
C. To increase spending
d)
D. To eliminate taxes
4.
Which account type is best for everyday transactions?
a)
A. Checking account
b)
B. Savings account
c)
C. Certificate of Deposit (CD)
d)
D. Brokerage account
5.
What is a benefit of using a savings account?
a)
A. It allows unlimited withdrawals.
b)
B. It helps build interest on deposited money.
c)
C. It has no withdrawal limits.
d)
D. It earns higher interest than investments.
6.
What does the stock market allow people to do?
a)
A. Store money safely
b)
B. Borrow money for a home
c)
C. Buy and sell shares of companies
d)
D. Deposit checks
7.
What is a key benefit of investing in stocks?
a)
A. Guaranteed returns
b)
B. Potential for long-term growth
c)
C. Protection against losses
d)
D. Immediate access to funds
8.
Which of the following is a characteristic of a credit card?
a)
A. It automatically deducts money from your bank account.
b)
B. It allows you to borrow money up to a limit.
c)
C. It always has a fixed interest rate.
d)
D. It is only used for online purchases.
9.
What is compound interest?
a)
A. Interest paid only on the initial deposit
b)
B. Interest earned on both the principal and previous interest
c)
C. A penalty for early withdrawal
d)
D. A type of loan repayment
10.
What is the main advantage of a Certificate of Deposit (CD)?
a)
A. High liquidity
b)
B. Higher interest rates than savings accounts
c)
C. No penalty for early withdrawal
d)
D. Unlimited transactions
11.
Which is an example of a fixed expense?
a)
A. Groceries
b)
B. Monthly rent
c)
C. Entertainment costs
d)
D. Clothing purchases
12.
Which type of account is designed to grow your money over time with interest?
a)
A. Checking account
b)
B. Savings account
c)
C. Credit card account
d)
D. Debit card account
13.
What does a debit card do?
a)
A. Provides a loan from the bank
b)
B. Withdraws money directly from your checking account
c)
C. Increases your credit score
d)
D. Helps you invest in stocks
14.
What does a good credit score indicate?
a)
A. Low financial responsibility
b)
B. High risk of defaulting on loans
c)
C. Trustworthiness in repaying borrowed money
d)
D. Inability to qualify for loans
15.
What is the minimum age to open a savings account at most banks without a co-signer?
a)
A. 10 years old
b)
B. 16 years old
c)
C. 18 years old
d)
D. 21 years old
16.
What is the purpose of overdraft protection?
a)
A. To prevent fraud
b)
B. To allow purchases even if you lack sufficient funds in your account
c)
C. To lower interest rates
d)
D. To increase the balance in your savings account
17.
Which financial institution is owned by its members and typically offers lower fees?
a)
A. Commercial bank
b)
B. Investment bank
c)
C. Credit union
d)
D. Online bank
18.
What is the stock market index?
a)
A. A place to buy goods
b)
B. A measure of stock market performance
c)
C. The amount of interest on a loan
d)
D. The number of investors in the market
19.
What does diversification in investing mean?
a)
A. Selling all your investments
b)
B. Investing in only one type of asset
c)
C. Spreading your investments across different assets
d)
D. Avoiding high-risk investments
20.
What is the main benefit of having an emergency fund?
a)
A. It earns high returns quickly.
b)
B. It reduces the need for loans during unexpected events.
c)
C. It increases your credit score.
d)
D. It guarantees financial independence.
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