This quiz works best with JavaScript enabled. Home > Finance > Personal Finance > Personal Finance > Personal Finance – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Finance Quiz 66 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which financial institution provides a small loan in return for a portion of an upcoming paycheck? A) Title Pawn. B) Bank. C) Credit Union. D) Payday Loan. Show Answer Correct Answer: D) Payday Loan. 2. Once you retire, you should plan to withdraw only ..... of your nest egg each year. A) 20%. B) 7%. C) 4%. D) 1%. Show Answer Correct Answer: C) 4%. 3. A person who cannot pay their debts. A) Debt. B) Bankrupt. C) Credit. D) None of above. Show Answer Correct Answer: B) Bankrupt. 4. The Rule of 72 determines A) How long it will take your $ to double. B) How long your $ will last after you retire. C) How many years you will live after retirment. D) How many years you have to work. Show Answer Correct Answer: A) How long it will take your $ to double. 5. Which type of communication takes place among employees? A) Horizontal. B) Upward. C) Formal meetings. D) Downward. Show Answer Correct Answer: A) Horizontal. 6. If expenses were to exceed income on a spending plan, what would be a financially smart solution? A) Use a credit card more often. B) Increase purchases. C) Decrease expenses. D) Earn less income. Show Answer Correct Answer: C) Decrease expenses. 7. Gross income includes all of the following EXCEPT: A) Employer's current contribution to 401(k). B) Interest or dividends received. C) Salary or wages. D) Capital gains realized. Show Answer Correct Answer: A) Employer's current contribution to 401(k). 8. Risk with a possibility of loss but no possibility of gain. A) Pure Risk. B) Risk Management. C) Risk. D) Speculative Risk. Show Answer Correct Answer: A) Pure Risk. 9. To use money, time, or items toward future benefits or making more money is called ..... A) Paying off. B) Borrowing. C) Saving. D) Investing. Show Answer Correct Answer: D) Investing. 10. Which statement is incorrect regarding the explanation of the income and expense statement? A) One's income should come from work and assets. B) Savings and investment expenses should not be less than 10 percent of total income. C) Fixed expenses should be more than 40 percent of total income. D) The first cost that can be reduced is Variable expenses. Show Answer Correct Answer: C) Fixed expenses should be more than 40 percent of total income. 11. What is the 50/30/20 rule used for in personal finance? A) Credit card management. B) Budgeting. C) Tax planning. D) Retirement Planning. Show Answer Correct Answer: B) Budgeting. 12. At your age, a fully funded emergency fund should be: A) $ 500. B) $ 5, 000. C) $ 1, 000. D) $ 100. Show Answer Correct Answer: A) $ 500. 13. When you use debit, money is borrowed and repaid at a later date. A) False. B) True. Show Answer Correct Answer: A) False. 14. Which of the following is an example of a medium term saving goal? A) Retirement. B) A bowling ball. C) A trip to Moldova over the summer. D) Buying the latest version of Minecraft. Show Answer Correct Answer: C) A trip to Moldova over the summer. 15. Pine Grove Middle School is the best school. A) True. B) False. Show Answer Correct Answer: A) True. 16. Which is an advantage of a good credit score? A) Banks won't loan you money. B) Banks will loan you money at a lower interest rate. C) You are a high risk. D) You will end up farther in debt. Show Answer Correct Answer: B) Banks will loan you money at a lower interest rate. 17. Bob has a pension which means ..... A) Bob will receive a check directly from his old employer for the rest of his life. B) The government will tax the money at a higher rate. C) The government will match what Bob saves for his retirement. D) Bob's employer will match the amount of money Bob takes from his check for retirement. Show Answer Correct Answer: A) Bob will receive a check directly from his old employer for the rest of his life. 18. When getting a loan for a car, the ..... is an additional fee you will have to pay back. A) Inflation. B) Interest. C) Fixed Expense. D) Discretionary Expense. Show Answer Correct Answer: B) Interest. 19. How are grants and scholarships different? A) Financial assistance to help pay for college expenses. B) Federal government loans. C) You don't have to carry around cash. D) Scholarships are merit based grants are need based. Show Answer Correct Answer: D) Scholarships are merit based grants are need based. 20. Your address, phone number and email address are ..... A) Skills. B) Contact information. C) Education. D) None of above. Show Answer Correct Answer: B) Contact information. 21. Taxes paid by employees to federal and state government through a direct deduction from their paycheck A) Salary. B) Paycheck. C) Sales Tax. D) Income Tax. Show Answer Correct Answer: D) Income Tax. 22. Which one of the following terms is money that is paid regularly at a particular rate for the use of borrowed money? SSEPFb A) Deposit. B) Withdrawal. C) Net Worth. D) Interest. Show Answer Correct Answer: D) Interest. 23. Which of the following is NOT an advantage of using cash to pay for something in a store? A) You will not have to pay interest. B) Your bank gives you a record of money spent. C) You cannot spend more than you have. D) It's quick if other people are waiting. Show Answer Correct Answer: B) Your bank gives you a record of money spent. 24. Global trade happens between countries in the form of ..... A) Supplies and demands. B) Gains and losses. C) Imports and exports. D) Borrowing and leasing. Show Answer Correct Answer: C) Imports and exports. 25. What is a financial reserve? A) An amount of money that's been set aside for emergencies. B) An amount of money that's been set aside for short-term goals. C) A way of organizing finances to set and meet goals. D) None of above. Show Answer Correct Answer: A) An amount of money that's been set aside for emergencies. 26. Which of the following statements about our interactions with money is NOT considered to be true? A) Your present self impacts your future self. B) You are better off in a community than by yourself. C) Investment increases risk and reduces your ability to cope with risk and uncertainty. D) None of above. Show Answer Correct Answer: C) Investment increases risk and reduces your ability to cope with risk and uncertainty. 27. Having a budget, investing in the future, and staying out of debt are ways citizens ..... A) Provide municipal revenue. B) Go bankrupt. C) Influence government spending. D) Manage their money wisely. Show Answer Correct Answer: D) Manage their money wisely. 28. Installment debt owed on houses, buildings, or land A) Annual percentage rate (APR). B) Mortgage. C) Principal. D) Finance company. Show Answer Correct Answer: B) Mortgage. 29. What does the term "compound interest" refer to? A) Interest earned only on the principal. B) Interest paid upfront. C) Simple interest without any compounding. D) Interest calculated on both the principal and accumulated interest. Show Answer Correct Answer: D) Interest calculated on both the principal and accumulated interest. 30. What is the main benefit of using a budget? A) It will help you compare your finances to your friends and families. B) It will help you make responsible decisions with your money. C) Credit card companies require people send a budget to get credit. D) A budget will allow to move money between different banks. Show Answer Correct Answer: B) It will help you make responsible decisions with your money. ← PreviousNext →Related QuizzesPersonal Finance QuizzesFinance QuizzesPersonal Finance Quiz 1Personal Finance Quiz 2Personal Finance Quiz 3Personal Finance Quiz 4Personal Finance Quiz 5Personal Finance Quiz 6Personal Finance Quiz 7Personal Finance Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books