WorksheetsPersonal Finance Concepts Quizs
Total questions: 20
Worksheet time: 10mins
What is a key characteristic of a good financial goal?
is only focused on saving money
is based on personal feelings
has a specific time frame
is flexible and adjustable
What type of benefit allowed the person to buy a new Apple computer after the fire?
replacement value
actual cash value
liability coverage
deductible
What is a key strategy for saving money to buy a house?
Investing in stocks
Taking out a loan
Following a budget that allows for saving
Cutting all expenses completely
What are the two main types of life insurance policies mentioned in personal finance?
Universal and variable life
Term and accidental death
Term and whole life (permanent)
Whole life and health insurance
What is the recommended age to start contributing to a retirement plan?
At age 40
At age 30
When starting a new job
As young as possible
What is the first step recommended when shopping for life insurance?
get prices from different companies
figure out how much is needed
choose a company based on reputation
consult a financial advisor
What economic condition is characterized by a decrease in purchasing power and an increase in the cost of goods?
deflation
recession
stagnation
inflation
Which of the following can help a person lower her personal risk of loss?
A will.
Insurance.
Home ownership.
What is the primary factor to consider when determining the amount of renters insurance coverage needed?
The average cost of renters insurance in the area
The length of the rental agreement
The number of people living in the rental unit
The dollar value of personal property to be covered by insurance
Which financial product is generally considered to have a higher risk compared to bonds and savings accounts?
Bonds
Mutual Funds
What is the term for the amount paid to an insurance company for coverage?
deductible
beneficiary
co-payment
premium
What term do insurance companies primarily consider when determining policy costs?
deductible
risk
coverage
premium
Discuss why car insurance premiums differ between teenage males and females based on accident statistics.
Teenage females are considered more responsible drivers than males.
Insurance companies charge the same rates for all teenagers regardless of gender.
What term describes a company that sells shares of ownership to the public through a stock exchange?
limited liability company
non-profit organization
private corporation
public corporation
What legal document ensures that a deceased person's assets are distributed according to their wishes?
a living will
a power of attorney
a trust
a will
Describe how to calculate total income based on salary, interest income, and dividend income.
Total income is calculated by adding salary, interest income, and dividend income together.
Total income is only based on salary.
Total income includes only interest income and dividends.
Total income is calculated by subtracting expenses from salary.
What is the formula to calculate net worth?
Net worth = Savings + Investments
Net worth = Assets + Liabilities
Net worth = Income - Expenses
Net worth = Assets - Liabilities
When a person has a balanced budget that includes savings then
total expenses = savings.
net income = discretionary income.
total expenses + savings = total income.
total income = total expenses - savings.
What is the term used to describe the strategy of spreading investments across various assets to minimize risk?
hedging
liquidation
diversification
What is likely to happen to car insurance costs if a driver accumulates multiple traffic violations?
increase
become unpredictable
remain the same
decrease
