This quiz works best with JavaScript enabled. Home > Personal Finance > Personal Finance > Personal Finance – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Finance Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Anything that increases the potential of loss through peril is called a ..... A) Risk. B) Hazard. Show Answer Correct Answer: B) Hazard. 2. Which retirement account do you pay taxes on the money when it comes OUT of the account. A) Traditional IRA. B) Roth IRA. C) 401k. D) 403b. Show Answer Correct Answer: A) Traditional IRA. 3. What does it mean to "barter" with a friend? A) ) To trade with your friend. B) ) To sell something to your friend. C) ) To buy something from your friend. D) None of above. Show Answer Correct Answer: A) ) To trade with your friend. 4. When you buy something using this method you have to pay it back. Sometimes it requires interest. What is this? A) Borrowing. B) Income. C) Investing. D) Credit. Show Answer Correct Answer: D) Credit. 5. The cost of something; The money spent on something. A) Expenses. B) Income. C) Credit. D) Overdraft. Show Answer Correct Answer: A) Expenses. 6. Desmond and Tasha went to Pete's Ice Cream Parlor and walked up to the counter. Desmond ordered a banana split and Tasha ordered a sundae. They paid Pete for the ice cream. One of Pete's employees, Sarah, made the banana split while Pete made the sundae. Sarah then carried the banana split and the sundae out to Desmond and Tasha.Who was a consumer? A) Only Sarah. B) Only Tasha. C) Pete and Sarah. D) Desmond and Tasha. Show Answer Correct Answer: D) Desmond and Tasha. 7. What does it mean to PYF? A) Immediately put 20% of your paycheck in your savings when you get paid. B) Immediately pay off your credit card debt when you get paid. C) Invest in the stock market before you save for retirement. D) Buy your wants before buying your needs. Show Answer Correct Answer: A) Immediately put 20% of your paycheck in your savings when you get paid. 8. Why is competition good for consumers? A) Competition allows customers to buy goods and services on credit. B) Competition encourages customers to save their money instead of spending it. C) Competition guarantees that consumers can purchase anything they want at any time. D) Competition encourages businesses to offer consumers low prices and quality products. Show Answer Correct Answer: D) Competition encourages businesses to offer consumers low prices and quality products. 9. Which type of tax is the best example of a regressive tax? A) Sales Tax. B) Income Tax. C) Property tax. D) Corporate tax. Show Answer Correct Answer: A) Sales Tax. 10. The federal government program that helps individuals who are disabled or retired people and their families is called A) Social Security. B) Central Security. C) Central Intelligence. D) Social Democracy. Show Answer Correct Answer: A) Social Security. 11. Deductions help reduce your A) Itemized expenses. B) Adjusted gross income. C) Credit. D) None of above. Show Answer Correct Answer: B) Adjusted gross income. 12. What is something of value a borrower can use to back the loan if the borrower can no longer pay the scheduled payments? A) Character. B) Capacity. C) Collateral. D) Communion. Show Answer Correct Answer: C) Collateral. 13. Which of the following is NOT a need? A) Food. B) Clothes. C) Netflix. D) Shelther. Show Answer Correct Answer: C) Netflix. 14. Households sell their labor to businesses because A) They receive income in exchange for labor. B) They receive tax money in exchange for labor. C) They receive small business loans in exchange for labor. D) They receive government services in exchange for labor. Show Answer Correct Answer: A) They receive income in exchange for labor. 15. A Demand Deposit Account A) Allows for funds to be removed with a check and does not require approval. B) Does not allow for funds to be removed with a check. C) Allows for funds to be removed with a check and does require approval. D) None of above. Show Answer Correct Answer: A) Allows for funds to be removed with a check and does not require approval. 16. A set amount of income paid each month A) Income. B) Salary. C) Hourly Pay. D) Deposit. Show Answer Correct Answer: B) Salary. 17. The total amount owed at a given point in time A) Loan. B) Credit. C) Debt. D) Income. Show Answer Correct Answer: C) Debt. 18. Money taken out of an account. A) Depository Institution. B) Commercial Bank. C) Withdraw. D) Deposit. Show Answer Correct Answer: C) Withdraw. 19. What are the three basic reasons to save money? A) So you can profit, get rich, and spend. B) Build an emergency fund, pay cash for purchases, and build wealth. C) Purchase large items, spend money on the things wanted, and to have freedom. D) To not be poor, have extra cash, and to spend money on yourself. Show Answer Correct Answer: B) Build an emergency fund, pay cash for purchases, and build wealth. 20. What is the primary source of government revenues? A) Taxes. B) Fines. C) Fees. D) Speeding tickets. Show Answer Correct Answer: A) Taxes. Next →Related QuizzesPersonal Finance QuizzesPersonal Finance Quiz 2Personal Finance Quiz 3Personal Finance Quiz 4Personal Finance Quiz 5Personal Finance Quiz 6Personal Finance Quiz 7Personal Finance Quiz 8Personal Finance Quiz 9Personal Finance Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books