This quiz works best with JavaScript enabled. Home > Personal Finance > Personal Finance > Personal Finance – Quiz 86 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Finance Quiz 86 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is NOT TRUE about a regressive tax A) Everyone pays the same dollar amount. B) Sales tax is an example of a regressive tax. C) It allows poor people to pay less in taxes than wealthy. D) It hurts the poor more than the wealthy since ability to pay is not taken into consideration. Show Answer Correct Answer: C) It allows poor people to pay less in taxes than wealthy. 2. Your computer is broken and you want to buy a new one. How can you offset the price of a new computer when using a credit card?AFix the old computer, sell it, and use the money to pay the credit card balance.BUse the old computer as a paper weight.CFix the old computer and give it to a friend. A) Fix the old computer, sell it, and use the money to pay the credit card balance. B) Use the old computer as a paper weight. C) Fix the old computer and give it to a friend. D) None of above. Show Answer Correct Answer: A) Fix the old computer, sell it, and use the money to pay the credit card balance. 3. Mr. Holbrook just bought a new car. What is the collateral for the car loan? A) His home. B) The money in his savings account. C) The car. D) His collection of antique stamps. Show Answer Correct Answer: C) The car. 4. My cousin wanted to borrow $ 300 from me. I loaned him the money but I told him that he would have to pay me back $ 330. The money that was paid back to me on top of the loan is known as ..... A) Credit. B) Interest. C) Savings. D) Debt. Show Answer Correct Answer: B) Interest. 5. Keep account balances at or below 25% of credit limits A) Positive Effect. B) Negative Effect. Show Answer Correct Answer: A) Positive Effect. 6. A sum of money deposited INTO an account A) Debit. B) Credit. C) Balance. D) Add. Show Answer Correct Answer: B) Credit. 7. When taking advantage of the time value of money, which of the following is most likely to result in the largest return? A) Invest a large principal amount of money and then make no additional investments. B) Invest as long as possible and at the highest interest rate possible. C) Invest a small amount of money for a short period of time at the highest interest rate possible. D) Invest at a high interest rate because interest is the only factor that affects return. Show Answer Correct Answer: B) Invest as long as possible and at the highest interest rate possible. 8. Retirement means A) Insurance that covers fire, theft, and water damage. B) The math term out of 100. C) The period of time after you stop working. D) The value of your assets minus your debts. Show Answer Correct Answer: C) The period of time after you stop working. 9. The best measure of a person's or family's wealth is A) The amount of salary earned annually. B) Net worth. C) The total dollar value of investment assets. D) The market value of real estate including the personal home. Show Answer Correct Answer: B) Net worth. 10. A checking account is a very common type of account that offers safety and convenience. A) True. B) False. Show Answer Correct Answer: A) True. 11. Leah goes to the store and buys items to make dinner. Leah is a ..... A) Producer. B) Consumer. Show Answer Correct Answer: B) Consumer. 12. The 8% sales tax we pay in Augusta could be categorized as a A) Progressive tax. B) Regressive tax. C) Proportional tax. D) None of the above. Show Answer Correct Answer: B) Regressive tax. 13. Which financial institution is owned and controlled by its members? A) Bank. B) Credit Union. C) Payday Loan. D) Title Pawn. Show Answer Correct Answer: B) Credit Union. 14. What is the total amount of money you spend if you write a check for $ 400, withdraw $ 20, write another check for $ 325, another check for $ 25, get charged an overdraft fee of $ 30, and then write one final check for $ 150? A) $ 629.95. B) $ 950.00. C) $ 750.00. D) None of above. Show Answer Correct Answer: B) $ 950.00. 15. A personal check that's been certified as being good by the financial institution on which it's drawn. A) Cashier's check. B) Certified Check. C) Money Order. D) Traveler's Checks. Show Answer Correct Answer: B) Certified Check. 16. A tax on purchased goods and services A) Community. B) Property tax. C) Earned income. D) Sales tax. Show Answer Correct Answer: D) Sales tax. 17. ..... is the want or need for a product. A) Demand. B) Income. C) Supply. D) Unit Cost. Show Answer Correct Answer: A) Demand. 18. What is debt consolidation? A) Putting all debt into one manageable loan. B) Putting all your credit debt on one credit card. C) Taking all debt and declaring bankruptcy. D) Paying it all back over time. Show Answer Correct Answer: A) Putting all debt into one manageable loan. 19. What is the first step in setting your financial goals? A) Review how much money you have now. B) Set a reasonable goal. C) Define what you want to accomplish. D) Develop a plan of action. Show Answer Correct Answer: C) Define what you want to accomplish. 20. When creating a budget. Always prioritize your ..... first. A) Needs. B) Wants. C) Nothing. D) None of above. Show Answer Correct Answer: A) Needs. ← 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