This quiz works best with JavaScript enabled. Home > Personal Finance > Personal Finance > Personal Finance – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Finance Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An amount of money that is loaned to someone and that can earn interest A) Principle. B) Loan. C) Gross pay. D) Premium. Show Answer Correct Answer: A) Principle. 2. Investing in a wide variety of stocks and bonds is part of ..... A) Diversification. B) ROI. C) Short Selling. D) Amortization. Show Answer Correct Answer: A) Diversification. 3. What is personal finance? A) The price paid to borrow money at a specified rate. B) Managing money through budgeting, spending, and savings. C) Mandatory payment or charge collected by local, state, or federal government. D) A prediction of credit behavior based on likelihood to pay loans. Show Answer Correct Answer: B) Managing money through budgeting, spending, and savings. 4. PEOPLE WHO ARE PAID BY THE HOUR EARN ..... A) Salaries. B) Credit. C) Wages. D) None of above. Show Answer Correct Answer: C) Wages. 5. A comprehensive financial services package offered by a brokerage firm and, recently some investment banking institutions include services such as checking account, credit card, debit card.etc A) Money market Mutual Funds (MMMFs). B) Asset Management Account. Show Answer Correct Answer: B) Asset Management Account. 6. When you barter you are exchanging money for goods. A) True. B) False. Show Answer Correct Answer: B) False. 7. List four risks of investing in the stock market A) Risk of decline in value of investment, risk of lost of purchasing power, risk of failure or default, risk of illiquidity. B) It's a legal requirement, coverage of unexpected expenses, some life insurance plans build equity to borrow against, possible tax credit to cover insurance premium. C) Set goals, study income and expenditures compared to goals, investigate investment opportunities, create a plan to achieve those goals. D) Huge drop in credit score, lack of future credit options, could loan personal property. Show Answer Correct Answer: A) Risk of decline in value of investment, risk of lost of purchasing power, risk of failure or default, risk of illiquidity. 8. Money must remain in this tool for a specific period of time or pay a penalty fee. A) Certificate Of Deposit. B) Money Market Account. C) Savings Account. D) None of above. Show Answer Correct Answer: A) Certificate Of Deposit. 9. $FV\ =\ PV\left(1+i\right)^n$ A) 5. B) 10. C) 20. D) 1.25. Show Answer Correct Answer: C) 20. 10. What is a Budget? A) Money you earn. B) Money you spend on everything. C) A record of all the money you earn and spend; where your money goes. D) Borrowing money to pay for something now while promising to repay it later. Show Answer Correct Answer: C) A record of all the money you earn and spend; where your money goes. 11. If you have assets of $ 305, 000 and liabilities of $ 245, 000, what is your net worth? A) $ 305, 000. B) $ 60, 000. C) $ 55, 000. D) $ 550, 000. Show Answer Correct Answer: C) $ 55, 000. 12. A trapezoid..... A) A quadrilateral with 3 sides. B) A polygon with 4 sides and 4 angles. C) Figure with 3 vertices. D) A quadrilateral with one pair of parallel sides. Show Answer Correct Answer: D) A quadrilateral with one pair of parallel sides. 13. Which of the following is an advantage of a debit card? A) You can accidentally wash it in the washing machine. B) You can buy expensive items. C) You can purchase items online. D) You can use it at restaurants. Show Answer Correct Answer: C) You can purchase items online. 14. What is the main benefit of debit card access the money in your checking account? A) Financial assistance to help pay for college expenses. B) Scholarships are merit based grants are need based. C) Federal government loans. D) You don't have to carry around cash. Show Answer Correct Answer: D) You don't have to carry around cash. 15. What do you call a plan to manage your money by monitoring your income and tracking your expenses. A) Savings. B) Expenses. C) Budget. D) Interest. Show Answer Correct Answer: C) Budget. 16. Which of the following is the most responsible thing for you to do? A) Spend money on going out. B) Purchase the most expensive car you can. C) Put money in savings every month. D) Always purchase the average priced item. Show Answer Correct Answer: C) Put money in savings every month. 17. What is the difference between investing and trading? A) Investing is about long-term, trading is about short-term. B) Investing is about short-term, trading is about long-term. C) Investing deals with stocks, trading deals with commodities. D) Investing deals with companies, trading deals with buying/selling. Show Answer Correct Answer: A) Investing is about long-term, trading is about short-term. 18. What is a savings? A) Money set aside for later use. B) Money you use to buy gas. C) Money used to purchase a bike. D) Money in your pocket. Show Answer Correct Answer: A) Money set aside for later use. 19. What is a mortgage? A) A credit card loan. B) A home loan. C) When the owner of an item takes the item back because of the lack of repayment. D) None of above. Show Answer Correct Answer: B) A home loan. 20. DIRT BIKE A) Asset. B) Liability. Show Answer Correct Answer: A) Asset. ← PreviousNext →Related QuizzesPersonal Finance QuizzesPersonal Finance Quiz 1Personal Finance Quiz 2Personal Finance Quiz 3Personal Finance Quiz 4Personal Finance Quiz 6Personal Finance Quiz 7Personal Finance Quiz 8Personal Finance Quiz 9Personal Finance Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books