WorksheetsCh 1 and 2 Personal Finance Quiz
Total questions: 10
Worksheet time: 6mins
Name
Class
Date
1.
What is 25% of 80?
a)
15
b)
20
c)
25
d)
30
2.
An opportunity cost is defined as
a)
the benefits of all alternatives considered
b)
the value of the next best alternative forgone when making a decision (giving up something to get something else)
c)
the total cost of a decision
d)
the cost of the chosen option only
3.
Assets are something you own
a)
True
b)
False
4.
A liability is something you
(a)
5.
Which is a true statement about the relationship between education and a person's earning power?
a)
Education level is irrelevant to job opportunities.
b)
Higher education generally leads to higher earning power.
c)
More education decreases earning potential.
d)
Higher education has no impact on earning power.
6.
What is interest?
a)
Interest is a type of tax on income.
b)
Interest is the amount paid for insurance.
c)
Interest is a fee for using a credit card.
d)
Interest is the cost of borrowing money or the return on investment. (The fee you pay to use other's money)
7.
Net Worth is determined by what?
a)
Net Worth is determined by annual salary only.
b)
Net Worth is determined by total assets minus total liabilities.
c)
Net Worth is determined by the number of assets owned.
d)
Net Worth is determined by total income plus total expenses.
8.
Liquidity is
a)
the ease of converting assets to cash
b)
the value of investments over time
c)
the speed of asset depreciation
d)
the total amount of cash on hand
9.
Budgeting is the process of
a)
tracking expenses only
b)
calculating taxes
c)
planning and managing financial resources
d)
investing in stocks
10.
How many components are there to a financial plan?
a)
Seven components
b)
Three components
c)
Eight components
d)
Four components
100 %
