This quiz works best with JavaScript enabled. Home > Personal Finance > Personal Finance > Personal Finance – Quiz 67 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Finance Quiz 67 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following accrue interest? A) Student Loans. B) Gift Aid. C) Work Study. D) None of above. Show Answer Correct Answer: A) Student Loans. 2. A person or company to whom money is owed A) Credit. B) Credit card. C) Exemption. D) Creditor. Show Answer Correct Answer: D) Creditor. 3. One negative to using credit for purchases is that it can lead to unnecessary debt. A) True. B) False. Show Answer Correct Answer: A) True. 4. What is the definition of taxes? A) Optional payments made to the government. B) Money paid to politicians. C) Required payments to the government for roads, military, and local community benefit. D) The government taking money for themselves. Show Answer Correct Answer: C) Required payments to the government for roads, military, and local community benefit. 5. Which is not a source of income from work? A) Salary. B) Commission. C) Land and house for sale. D) Doing personal business. Show Answer Correct Answer: C) Land and house for sale. 6. Which sentence describes the risk and returns of investing in stocks? A) They offer the lowest risks and the lowest potential returns. B) They offer the highest risks and the highest potential. C) They offer the lowest risks, but the highest potential returns. D) They offer the highest risks, but the lowest potential returns. Show Answer Correct Answer: B) They offer the highest risks and the highest potential. 7. Getting a pet hamster A) Goods. B) Services. Show Answer Correct Answer: A) Goods. 8. What term means to spend money now in hopes that you make more money in the future? A) Interest. B) Debt. C) Loan. D) Investment. Show Answer Correct Answer: D) Investment. 9. The money you have left to spend or save after taxes and other deductions(required and optional) are taken. A) Budget deficit. B) Disposable income. C) Savings. D) Liability. Show Answer Correct Answer: B) Disposable income. 10. The possibility of a loss is called A) Risk. B) Liability. C) Insurance. D) Hazard. Show Answer Correct Answer: A) Risk. 11. What is the primary function of the Federal Reserve? A) Conducting the nation's monetary policy and supervision of banks. B) It is a bank for the rich. C) It is a big bank. D) None of above. Show Answer Correct Answer: A) Conducting the nation's monetary policy and supervision of banks. 12. ..... are retirement accounts that are not taxed until the money is taken out A) IRAs. B) Roth IRAs. C) Social Security. D) 401ks. Show Answer Correct Answer: B) Roth IRAs. 13. The total interest earned on $ 100 for three years at 10% (compounded annually) would be roughly A) $ 21. B) $ 131. C) $ 31. D) $ 41. Show Answer Correct Answer: A) $ 21. 14. The police force, fire department, parks, elementary schools, and roads are all goods and services the government provides for its citizens. A) False. B) True. Show Answer Correct Answer: B) True. 15. This statement was made by a customer. Were they referring to a credit card, debit card, or both? "I had to pay an extra $ 80 for this television because I didn't pay my entire bill right away." A) Debit. B) Credit. C) Both. D) None of above. Show Answer Correct Answer: B) Credit. 16. Food, clothing, homes are all A) Needs. B) Wants. Show Answer Correct Answer: A) Needs. 17. Taxable income A) The portion of your gross income that the IRS deems subject to taxes. B) Income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes. C) Expenses that are required for living. (childcare, healthcare, etc.). D) Money derived from paid work. Show Answer Correct Answer: A) The portion of your gross income that the IRS deems subject to taxes. 18. A bad credit report cannot affect my chances of getting a job. A) True. B) False. Show Answer Correct Answer: B) False. 19. Lenders use this to determine your creditworthiness A) Credit score. B) ACT score. C) IQ. D) The Turing Test. Show Answer Correct Answer: A) Credit score. 20. Dawn graduated from high school and wants to get a credit card. How can Dawn establish credit-worthiness? A) Opening a checking account, making regular deposits, and avoiding penalties for insufficient funds. B) Be extremely careful about disclosing account information. C) The Truth in Lending Act of 1968. D) None of above. Show Answer Correct Answer: A) Opening a checking account, making regular deposits, and avoiding penalties for insufficient funds. ← PreviousNext →Related QuizzesPersonal Finance QuizzesPersonal Finance Quiz 1Personal Finance Quiz 2Personal Finance Quiz 3Personal Finance Quiz 4Personal Finance Quiz 5Personal Finance Quiz 6Personal Finance Quiz 7Personal Finance Quiz 8Personal Finance Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books