This quiz works best with JavaScript enabled. Home > Personal Finance > Personal Finance > Personal Finance – Quiz 85 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Finance Quiz 85 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A budget deficit means that you A) Have more income than expenses. B) Are making money on investments. C) Failed to repay a loan. D) Have more expenses than income. Show Answer Correct Answer: D) Have more expenses than income. 2. What is an example of a utility cost? A) Your college savings fund. B) Your electric and heating bills. C) Your grocery budget. D) Your cell phone. Show Answer Correct Answer: B) Your electric and heating bills. 3. Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or addition of interest). A) Credit. B) Investing. C) Profit. D) Budget. Show Answer Correct Answer: A) Credit. 4. Conner is considering whether or not to buy a car. If he is using rational decision making, he should primarily consider A) The Cost of the car. B) The marginal costs and marginal benefits of her decision. C) The color of the car. D) The mileage on the car. Show Answer Correct Answer: B) The marginal costs and marginal benefits of her decision. 5. A person who creates, organizes, and manages a new business; usually involves the risk of invested money (capital) in order to make money. A) Investor. B) Entrepreneur. C) Banker. D) Stock Broker. Show Answer Correct Answer: B) Entrepreneur. 6. The money that you receive for mowing the lawn, babysitting or making good grades is called ..... A) Income. B) Credit. C) Debt. D) Interest. Show Answer Correct Answer: A) Income. 7. The easiest way to protect yourself from credit card debt is to SSEPF4 A) Not use credit cards. B) Use credit cards only for small purchases. C) Get cards with 0% interest for a year. D) Get credit cards with cash back rewards. Show Answer Correct Answer: A) Not use credit cards. 8. Which of the following represents the correct conducting of the budgeting process? A) Create a general budget, review your finances to find variances, decide on tactical goals and then find ways to operationalize your tactical goals. B) Analyze your income, develop a budget, explore revenue options and develop a pension plan. C) Ask for a loan, analyze the financial structure of your assets and liabilities with a financial advisor and decide whether or not you should increase investments. D) Budget monthly, complete a comparison analysis of actual income and expenses, review any variances, and make adjustments for the next month. Show Answer Correct Answer: D) Budget monthly, complete a comparison analysis of actual income and expenses, review any variances, and make adjustments for the next month. 9. A measure of one's money that is received and spent is A) Cash Flow. B) Financial Planning. C) Budget. D) Income. Show Answer Correct Answer: A) Cash Flow. 10. Money in a bank account held in trust to pay taxes and insurance when due A) Collateral. B) Credit score/ FICO. C) Escrow account. D) Social Security Tax. Show Answer Correct Answer: C) Escrow account. 11. Interest you make on that money A) Compound interest. B) Rule of 72. C) Time value of money. D) Interest. Show Answer Correct Answer: A) Compound interest. 12. What is bankruptcy? A) A legal proceeding involving a person or business that is unable to repay outstanding debts. B) Making money off of investments. C) Saving money for a business when making purchases. D) Getting an extremely high mortgage. Show Answer Correct Answer: A) A legal proceeding involving a person or business that is unable to repay outstanding debts. 13. Amanda decides to work on her project instead of playing with friends outside. This choice best describes a(n) A) Spending. B) Opportunity cost. C) Income. D) Expenditure. Show Answer Correct Answer: B) Opportunity cost. 14. The amount of income left after taxes have been paid A) Deductions. B) Net income. C) Gross. D) Income tax. Show Answer Correct Answer: B) Net income. 15. Sales tax is an example of what type of tax? A) Progressive. B) Flat. C) Regressive. D) Proportional. Show Answer Correct Answer: C) Regressive. 16. Which one of these is level 4 of Maslow's hierarchy of needs? A) Self-esteem. B) Safety and security. C) Food, shelter. D) Love and belonging. Show Answer Correct Answer: A) Self-esteem. 17. Which of the following would you count as cash inflow? A) Finding $ 10 in the wash. B) Letting someone borrow $ 20 when they say they will pay it back tomorrow. C) Giving a cash tip. D) $ 500 available credit on your credit card. Show Answer Correct Answer: A) Finding $ 10 in the wash. 18. What is the main purpose of insurance? A) To follow the law. B) To get weathly. C) For investment purposes. D) To reduce risk. Show Answer Correct Answer: D) To reduce risk. 19. What is the advantage of getting a federal student loan as opposed to a private loan would be the ..... A) Lower interest rate. B) Easier application process. C) Longer period of repayment. D) Amount of money available for loan. Show Answer Correct Answer: A) Lower interest rate. 20. Cost of credit expressed in dollars and cents A) Finance charge. B) Unsecured loan. C) Collateral. D) Interest. Show Answer Correct Answer: A) Finance charge. ← 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