This quiz works best with JavaScript enabled. Home > Personal Finance > Personal Financial Planning > Personal Financial Planning – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Personal Financial Planning Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. You owe more than you own. A) Insolvent. B) Solvent. C) Cash flow. D) Expenses. Show Answer Correct Answer: A) Insolvent. 2. John earns $ 3000 monthly income and he decides to set aside 10 percent as savings. In his savings, John wants to reserve 20 percent in his emergency fund. What amount would John accumulate in his emergency fund annually? A) $ 600. B) $ 300. C) $ 360. D) $ 720. Show Answer Correct Answer: D) $ 720. 3. You should save at least ..... percent of your income. A) 5. B) 10. C) 15. D) 20. Show Answer Correct Answer: B) 10. 4. Which type of insurance did not mention in this workshop? A) General Insurance. B) Medical Insurance. C) Pet Insurance. D) Life Insurance. Show Answer Correct Answer: C) Pet Insurance. 5. Major purchases that require time, planning and extensive saving. Usually takes more than 5 years to achieve. A) Short-term financial goal. B) Intermediate financial goal. C) Long-term financial goal. D) Smart goal. Show Answer Correct Answer: C) Long-term financial goal. 6. A task that a person or a machine performs in exchange for something else. A) Service. B) Favor for a good pal. C) Good. D) Consumer. Show Answer Correct Answer: A) Service. 7. Which of the following is not one of the closing costs in purchasing a home? A) Appraisal fee. B) Home inspection fee. C) Prepaid property tax. D) Moving costs. Show Answer Correct Answer: D) Moving costs. 8. Money left over after taxes and other deductions A) Disposable income. B) Discretionary income. C) Anticipated income. D) Unanticipated income. Show Answer Correct Answer: A) Disposable income. 9. Which payment frequency, all else being equal, will generally save you the most interest over the life of your mortgage? A) Semi-monthly. B) Biweekly. C) Accelerated biweekly. D) Weekly. Show Answer Correct Answer: C) Accelerated biweekly. 10. Something that you would like to accomplish A) Value. B) Goal. C) Asset. D) Budget. Show Answer Correct Answer: B) Goal. 11. Put aside at least ..... % of your income for your savings A) 5. B) 10. C) 20. D) None of above. Show Answer Correct Answer: B) 10. 12. The total value of a person's financial assets minus their obligations (liabilities). A) Net pay. B) Gross pay. C) Net worth. D) Cash flow. Show Answer Correct Answer: C) Net worth. 13. Elijah budgeted $ 100 a month for entertainment, but this month he only spent $ 75. This is considered a ..... A) Budget deficit. B) Budget surplus. C) Shortage. D) Budget variance. Show Answer Correct Answer: D) Budget variance. 14. Long-term investment is better than short-term investment because A) Lower risk than short-term investment. B) More effort demanding than short-term investment. C) To have more money in own pocket. D) More money earned in a short time. Show Answer Correct Answer: A) Lower risk than short-term investment. 15. The total earnings paid to an employee after payroll taxes and other deductions. Also known as take-home pay. A) Net worth. B) Net pay. C) Gross pay. D) Wage. Show Answer Correct Answer: B) Net pay. 16. Spending, saving, and investing to have the kind of life that you want and financial security can be achieved by A) Personal financial planning. B) Paying interest. C) Buying stock. D) Regulating inflation. Show Answer Correct Answer: A) Personal financial planning. 17. Which of the following is not an example of a personal financial statement A) Bank Statement. B) Personal Budgets. C) Cashflow Statements. D) Ledger Statment. Show Answer Correct Answer: D) Ledger Statment. 18. Items with special qualities that make them more expensive than alternative products A) Luxury goods. B) Consumer goods. C) Consumer wants. D) Bargains. Show Answer Correct Answer: A) Luxury goods. 19. Arrange the following investment from the most risky to the least risky:(1) Saving deposits (2) Stocks (3) Term deposit (4) Bonds A) , (2), (3), (4). B) , (4), (1), (3). C) , (4), (3), (1). D) , (2), (3), (1). Show Answer Correct Answer: C) , (4), (3), (1). 20. Spending money, time or items toward future benefits for making more money is called A) Borrowing. B) Paying off. C) Saving. D) Investing. Show Answer Correct Answer: D) Investing. ← PreviousNext →Related QuizzesPersonal Finance QuizzesPersonal Financial Planning Quiz 1Personal Financial Planning Quiz 3Personal Financial Planning Quiz 4Personal Financial Planning Quiz 5Personal Financial Planning Quiz 6Personal Financial Planning Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books