This quiz works best with JavaScript enabled. Home > Finance > Personal Finance > Personal Financial Planning > Personal Financial Planning – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Financial Planning Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Nancy has a gross income of $ 47 000, disposable income of, a net worth of $ 80000 and saves $ 8000 a year. Her savings rate is A) 20 percent. B) 10 percent. C) 17 percent. D) 15 percent. Show Answer Correct Answer: A) 20 percent. 2. Future Value computations are also called A) Combining. B) Confusion. C) Compounding. D) Composition. Show Answer Correct Answer: C) Compounding. 3. Money spent on different items. A) Insolvent. B) Solvent. C) Appreciation. D) Expenses. Show Answer Correct Answer: D) Expenses. 4. Money left over after taxes andother deductions:money used to pay necessary expenses. A) Expenses. B) Disposable income. C) Income. D) Discretionary spending. Show Answer Correct Answer: B) Disposable income. 5. You put $ 100 into a bank account. The account will pay you 5% interest. How much interest will you have earned at the end of the year? A) $ 105.00. B) $ 15.00. C) $ 5.00. D) $ 1, 005.00. Show Answer Correct Answer: C) $ 5.00. 6. This month Joshua has $ 2000 income from his job and $ 100 interest income. His expenses are rent $ 500, food and entertainment $ 400 and car expenses $ 600. He has $ 40 000 held in bonds and a car loan of $ 10 000. What is his cash flow this month? A) $ 30 600. B) $ 600. C) $ 500. D) -$ 9400. Show Answer Correct Answer: B) $ 600. 7. Which of the following is not a right of a stockholder of a listed company A) Sell his stock in the stock market. B) Vote in the general meeting. C) Receive dividends. D) Elect directors. Show Answer Correct Answer: C) Receive dividends. 8. The main reason that people have money problems is A) That they didn't go to college. B) That they have too many mouths to feed. C) That they don't get minimum wage. D) That they do not plan ahead how they will use their money. Show Answer Correct Answer: D) That they do not plan ahead how they will use their money. 9. The price paid for the use of another's money. A) Future value. B) Present value. C) Interest. D) Liquidity. Show Answer Correct Answer: C) Interest. 10. A tool for managing money to achieve short and long-term goals A) Personal property inventory. B) Check book. C) Net worth statement. D) Budget. Show Answer Correct Answer: D) Budget. 11. Making extra mortgage payments does which of the following? A) Reduces the length of the loan. B) Increases total amount paid. C) Increases cash flow. D) Reduces the payment amount. Show Answer Correct Answer: A) Reduces the length of the loan. 12. Money paid regularly at a particular rate for the use of money lent. A) Liquidity. B) Debt. C) Bank pyaments. D) Interest. Show Answer Correct Answer: D) Interest. 13. What is our group name? A) Bankrupt. B) Piggy Bank. C) APA 7th Edition. D) Public Bank. Show Answer Correct Answer: B) Piggy Bank. 14. The idea that you should remove money for savings purposes as soon as you receive any income A) Personal Property. B) Pay Yourself First. C) Direct Deposit. D) Budgeting. Show Answer Correct Answer: B) Pay Yourself First. 15. What benefits do bond investment offer? (1) Coupon payments(2) Bond appreciation(3) Tax allowance(4) Dividends A) And (2) only. B) And (4) only. C) , (2) and (4) only. D) , (3) and (4) only. Show Answer Correct Answer: A) And (2) only. 16. An increase in the value of an asset A) Depreciation. B) Solvent. C) Appreciation. D) Insolvent. Show Answer Correct Answer: C) Appreciation. 17. George has total debts of $ 10 000, liquid assets of $ 8000 and current liabilities of $ 5000. His current ratio is A) 0.63. B) 1.6. C) 6.3. D) 0.8. Show Answer Correct Answer: B) 1.6. 18. The measure of money coming in and money going out over a certain period of time A) Net worth. B) Liquidity. C) Cash flow. D) Gross pay. Show Answer Correct Answer: C) Cash flow. 19. What is the highest effective rate attainable with a 12 percent nominal rate? A) 12.55 percent. B) 12.75 percent. C) 12.85 percent. D) 12.65 percent. Show Answer Correct Answer: B) 12.75 percent. 20. Danny invests $ 124 090 in a fund and expects to receive $ 10 000 per year, at the end of each year, for the next 30 years. What is the approximate interest rate provided on the annuity? A) 9 percent. B) 6 percent. C) 7 percent. D) 8 percent. Show Answer Correct Answer: C) 7 percent. 21. You owe more than you own. A) Insolvent. B) Expenses. C) Cash flow. D) Solvent. Show Answer Correct Answer: A) Insolvent. 22. John earns $ 3000 monthly income and he decides to set aside 10 percent as savings. In his savings, John wants to reserve 20 percent in his emergency fund. What amount would John accumulate in his emergency fund annually? A) $ 600. B) $ 300. C) $ 720. D) $ 360. Show Answer Correct Answer: C) $ 720. 23. You should save at least ..... percent of your income. A) 20. B) 5. C) 15. D) 10. Show Answer Correct Answer: D) 10. 24. Which type of insurance did not mention in this workshop? A) Medical Insurance. B) Life Insurance. C) Pet Insurance. D) General Insurance. Show Answer Correct Answer: C) Pet Insurance. 25. Major purchases that require time, planning and extensive saving. Usually takes more than 5 years to achieve. A) Intermediate financial goal. B) Short-term financial goal. C) Smart goal. D) Long-term financial goal. Show Answer Correct Answer: D) Long-term financial goal. 26. A task that a person or a machine performs in exchange for something else. A) Consumer. B) Good. C) Favor for a good pal. D) Service. Show Answer Correct Answer: D) Service. 27. Which of the following is not one of the closing costs in purchasing a home? A) Home inspection fee. B) Moving costs. C) Appraisal fee. D) Prepaid property tax. Show Answer Correct Answer: B) Moving costs. 28. Money left over after taxes and other deductions A) Unanticipated income. B) Anticipated income. C) Disposable income. D) Discretionary income. Show Answer Correct Answer: C) Disposable income. 29. Which payment frequency, all else being equal, will generally save you the most interest over the life of your mortgage? A) Accelerated biweekly. B) Biweekly. C) Semi-monthly. D) Weekly. Show Answer Correct Answer: A) Accelerated biweekly. 30. Something that you would like to accomplish A) Asset. B) Budget. C) Goal. D) Value. Show Answer Correct Answer: C) Goal. Next →Related QuizzesPersonal Finance QuizzesFinance QuizzesPersonal Financial Planning Quiz 2Personal Financial Planning Quiz 3Personal Financial Planning Quiz 4Personal Financial Planning Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books