WorksheetsPersonal Finance Test
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
1. Which of the following best describes a deductible in insurance?.
a)
The amount the insurance company pays before you pay anything
b)
The amount you pay out of pocket before insurance covers the rest
c)
The monthly cost of insurance
d)
A discount for having good coverage
2.
2. What is a premium?
a)
The amount you borrow from a lender
b)
The monthly or yearly cost of your insurance policy
c)
A type of credit card fee
d)
A tax refund
3.
3. One advantage of renting a home is:
a)
You build equity over time
b)
Maintenance and repairs are usually handled by the landlord
c)
Rental payments decrease every year
d)
You can sell the property for a profit
4.
4. One advantage of buying a home is:
a)
You never have to pay for repairs
b)
It requires no money upfront
c)
You can build equity as you pay off the mortgage
d)
Property taxes are included in rent
5.
5. Bankruptcy is best defined as:
a)
A short-term loan with high interest
b)
A legal process where you declare you cannot repay your debts
c)
A way to eliminate taxes
d)
A type of investment account
6.
6. Which of the following is a consequence of bankruptcy?
a)
Your credit score increases
b)
You can immediately qualify for any loan
c)
It can remain on your credit report for up to 10 years
d)
Your debt is guaranteed to disappear forever
7.
7. A predatory loan is usually described as:
a)
A loan with reasonable interest rates
b)
A loan designed to help borrowers improve their credit
c)
A loan with extremely high fees and interest that targets vulnerable people
d)
A loan backed by the federal government
8.
8. Payday loans are considered predatory because:
a)
They require excellent credit
b)
They have very low interest rates
c)
They offer quick cash but trap borrowers with high fees
d)
They take several months to approve
9.
9. Which of the following helps improve your credit score the most?
a)
Maxing out your credit cards
b)
Paying bills on time every month
c)
Opening as many credit cards as possible
d)
Only paying the minimum balance forever
10.
10. What does APR stand for?
a)
Annual Percentage Rate
b)
Annual Payment Requirement
c)
Automated Payment Return
d)
Average Payment Rate
11.
11. The best strategy when using credit cards is to:
a)
Always pay only the minimum payment
b)
Carry a balance to increase your score
c)
Pay the full balance each month to avoid interest
d)
Open multiple cards at once
12.
12. Long-term investing usually focuses on:
a)
High-risk, get-rich-quick schemes
b)
Building wealth slowly over many years
c)
Borrowing money to invest
d)
Constantly buying and selling stocks daily
13.
13. A diversified investment portfolio means:
a)
All your money is in one stock
b)
You invest in a variety of assets to reduce risk
c)
You only invest in cryptocurrencies
d)
You only invest in savings accounts
14.
14. Which investment is generally considered best for long-term growth?
a)
Lottery tickets
b)
Stock index funds
c)
Payday loans
d)
Certificates of Deposit (CDs) only
15.
15. A common sign of a scam is:
a)
The company clearly explains fees
b)
You are pressured to act immediately
c)
You are given time to research
d)
The business provides written documentation
16.
16. Phishing scams typically involve:
a)
Fake emails or messages trying to steal your information
b)
Buying fake products online
c)
Stealing your physical mail
d)
Breaking into your bank account physically
17.
17. Renters insurance typically covers:
a)
Damage to the building
b)
The cost of your rent
c)
Your personal belongings in the rental unit
d)
Your landlord’s property taxes
18.
18. Which of the following is NOT a benefit of having insurance?
a)
Protection against large financial losses
b)
Peace of mind
c)
Guaranteed profit
d)
Ability to transfer risk
19.
19. A major disadvantage of renting is:
a)
You may face rent increases
b)
You must pay property taxes
c)
You build equity quickly
d)
You cannot live in apartments
20.
20. Which of the following is a red flag for predatory lending?
a)
Clear loan terms
b)
Very high interest rates and pressure to sign quickly
c)
Reasonable payment plans
d)
A lender checking your credit history
100 %
