An Informative Quiz On Financial Responsibility

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| By Tanya Mishra

Tanya Mishra

Community Contributor

Quizzes Created: 606 | Total Attempts: 1,076,300

Questions: 10 | Attempts: 156 | Updated: Aug 16, 2023

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An Informative Quiz On Financial Responsibility - Quiz

We welcome you to this financial responsibility quiz! Finances are tricky topics; unfortunately, not everyone can be responsible for them. Do you think you are financially responsible? If you feel so, we challenge you to try this awesome quiz! We are sure that this quiz will not only test your knowledge about finance handling but also will make learning new exciting things! Feel free to take up this quiz as many times as you like! You can even play this quiz with your friends for fun! Keep learning and growing! Good Luck!

Questions and Answers

1.

Which organization can also offer free financial advice to the people?
- A.
  
  Actors
- B.
  
  Government
- C.
  
  Army
- D.
  
  Banks
Correct Answer
D. Banks

Explanation
Banks can offer free financial advice to the people because they have financial experts who can provide guidance on managing money, budgeting, saving, investing, and other financial matters. Banks have a vested interest in helping their customers make informed financial decisions and improve their financial well-being. They may offer services such as financial consultations, educational resources, and workshops to help individuals and businesses make sound financial choices. Additionally, banks can provide information on various financial products and services that can help individuals achieve their financial goals.

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1
0
2.

What happens if the economy does not grow for six months or more?
- A.
  
  Recession
- B.
  
  Financial growth
- C.
  
  Inflation
- D.
  
  Deflation
Correct Answer
A. Recession

Explanation
If the economy does not grow for six months or more, it is likely to enter a recession. A recession is a significant decline in economic activity, characterized by a decrease in GDP, employment, and income levels. During a recession, businesses may struggle, leading to layoffs and reduced consumer spending. This can create a negative cycle, further impacting the economy. Therefore, the correct answer is recession.

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3.

Which of the following can affect your finances?
- A.
  
  Your height
- B.
  
  Your motivation
- C.
  
  Your mental health
- D.
  
  Your overall lifestyle
Correct Answer
D. Your overall lifestyle

Explanation
Your overall lifestyle can affect your finances because the way you choose to live your life can have a direct impact on your financial situation. For example, if you have a lavish lifestyle with expensive habits and spending patterns, it can lead to financial strain and debt. On the other hand, if you adopt a frugal lifestyle and make wise financial decisions, it can contribute to financial stability and success. Therefore, your overall lifestyle choices play a crucial role in determining your financial well-being.

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4.

Which of the following can help a person in a recession?
- A.
  
  Binge watching tv shows
- B.
  
  A new car
- C.
  
  An emergency fund
- D.
  
  None of the above
Correct Answer
A. Binge watching tv shows

Explanation
Binge watching TV shows can provide temporary distraction and entertainment during a recession, but it does not offer any practical or financial assistance. On the other hand, having an emergency fund can be extremely helpful during a recession as it provides a financial safety net in case of job loss or unexpected expenses. Therefore, the correct answer is "None of the above" as binge watching TV shows does not provide any tangible support during a recession.

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5.

Which of the following is NOT a good way to cope with inflation?
- A.
  
  Investing in good businesses
- B.
  
  Being a conscious shopper
- C.
  
  Getting a high paying job
- D.
  
  Making a budget
Correct Answer
B. Being a conscious shopper

Explanation
Being a conscious shopper is not a good way to cope with inflation because it focuses on individual spending habits rather than addressing the root cause of inflation. While being a conscious shopper can help manage personal finances, it does not have a direct impact on controlling or mitigating inflation. Inflation is a macroeconomic phenomenon caused by various factors such as monetary policy, supply and demand dynamics, and economic growth. Therefore, other options such as investing in good businesses, getting a high paying job, and making a budget are more effective ways to cope with inflation as they address the underlying economic factors.

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1
0
6.

What happens when you make a late payment on your bills?
- A.
  
  There will be more bills
- B.
  
  The balance in your account will be negative
- C.
  
  It will be difficult to get another loan
- D.
  
  None of the above
Correct Answer
C. It will be difficult to get another loan

Explanation
Making a late payment on your bills can negatively impact your credit score. This can make it difficult to get approved for another loan in the future as lenders may view you as a higher risk borrower.

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7.

Which of the following is true about people who are described as having credit risks?
- A.
  
  They have a history of not paying their bills on time
- B.
  
  They get the perks of being a loyal customers
- C.
  
  They can easily get the loans from the banks
- D.
  
  None of the above
Correct Answer
A. They have a history of not paying their bills on time

Explanation
People who are described as having credit risks have a history of not paying their bills on time. This means that they have a track record of late or missed payments, which indicates a higher likelihood of defaulting on future obligations. This can make it more difficult for them to obtain loans or credit from banks or other lenders. They do not receive perks or benefits for being loyal customers, as credit risks are seen as higher-risk borrowers.

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8.

Which of the following is a benefit of having a good credit history?
- A.
  
  Winning a lottery
- B.
  
  Getting a new savings account
- C.
  
  One can easily get low interest rate on loans
- D.
  
  Getting high interest rate in credit card payments
Correct Answer
C. One can easily get low interest rate on loans

Explanation
Having a good credit history allows individuals to easily obtain low interest rates on loans. Lenders consider a good credit history as an indication of a borrower's reliability and trustworthiness in repaying debts. This reduces the risk for lenders, leading to lower interest rates offered to borrowers with good credit. Consequently, individuals with a good credit history can save money by paying less interest on their loans, making it a significant benefit of maintaining a positive credit history.

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9.

The maximum amount one is allowed to carry as the balance on a credit card is called what?
- A.
  
  Credit limit
- B.
  
  Interest rate
- C.
  
  Savings rate
- D.
  
  Principal
Correct Answer
A. Credit limit

Explanation
The maximum amount one is allowed to carry as the balance on a credit card is called the credit limit. This limit is set by the credit card issuer and represents the maximum amount of money that can be charged to the credit card account. It serves as a safeguard to prevent cardholders from overspending and helps to manage their credit usage.

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10.

The amount of money borrowed is called a what?
- A.
  
  Collateral
- B.
  
  Credit limit
- C.
  
  Interest
- D.
  
  Principal
Correct Answer
D. Principal

Explanation
Principal refers to the amount of money that is borrowed or the initial amount of money invested. It is the base amount on which interest is calculated and is typically repaid in installments over a specific period of time. Collateral is an asset used to secure a loan, credit limit is the maximum amount a borrower can borrow, and interest is the cost of borrowing money. Therefore, the correct answer is principal.

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Current Version
Aug 16, 2023

Quiz Edited by
ProProfs Editorial Team
Nov 11, 2022

Quiz Created by
Tanya Mishra

An Informative Quiz On Financial Responsibility

Which organization can also offer free financial advice to the people?

What happens if the economy does not grow for six months or more?

Which of the following can affect your finances?

Which of the following can help a person in a recession?

Which of the following is NOT a good way to cope with inflation?

What happens when you make a late payment on your bills?

Which of the following is true about people who are described as having credit risks?

Which of the following is a benefit of having a good credit history?

The maximum amount one is allowed to carry as the balance on a credit card is called what?

The amount of money borrowed is called a what?