Ch. 1 - Quiz

20 Questions | Total Attempts: 35

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Ch. 1 - Quiz

Ch. 1 - Personal Finance Quiz


Questions and Answers
  • 1. 
    Planning your spending, borrowing, and saving are all aspects of ___________________.
    • A. 

      Financial advising

    • B. 

      Personal financial planning

    • C. 

      Asset management

    • D. 

      Credit management

  • 2. 
    Which of the following is an example of a liquid asset?
    • A. 

      The paycheck that you will receive in two weeks

    • B. 

      Your leased car

    • C. 

      Your checking and savings accounts

    • D. 

      Your credit card

  • 3. 
    In general, the more education you have, the ____________ your __________________.
    • A. 

      Higher; salary

    • B. 

      Lower; salary

    • C. 

      Higher; debt

    • D. 

      Lower;debt

  • 4. 
    Bankruptcy is a legal process in which a(n) _______________takes over some of the finances of a person who is unable to pay his or her debts. 
    • A. 

      Bank

    • B. 

      Court

    • C. 

      Investor

    • D. 

      Financial advisor

  • 5. 
    The purpose of insurance is to _______________ your assets.
    • A. 

      Expand

    • B. 

      Protect

    • C. 

      Finance

    • D. 

      Manage

  • 6. 
    When someone uses credit irresponsibly, it will likely be more difficult for him or her to buy anything on credit for several years.
    • A. 

      True

    • B. 

      False

  • 7. 
    A potential employer may check your credit history before offering you a job.
    • A. 

      True

    • B. 

      False

  • 8. 
    What does the opportunity cost of a purchase tell you?
    • A. 

      The cost of the purchase plus the cost of sales tax

    • B. 

      The cost of the purchase plus the cost of not doing or purchasing something else

    • C. 

      The cost of the purchase plus the interest paid on credit for the purchase

    • D. 

      The cost of the purchase minus the loss of interest on savings for the amount of the purchase

  • 9. 
    Which of the following is a long-term goal?
    • A. 

      Buying a cell phone

    • B. 

      Creating an emergency fund

    • C. 

      Taking a vacation

    • D. 

      Buying a house

  • 10. 
    A financial advisor will likely have a better understanding of _____________ than you do.
    • A. 

      Goal setting

    • B. 

      Tax laws

    • C. 

      Dangers posed by the Internet

    • D. 

      People skills

  • 11. 
    Which of the following is not a financial goal?
    • A. 

      Retiring at an early age

    • B. 

      Enjoying your career

    • C. 

      Making charitable donations

    • D. 

      Establishing an emergency fund

  • 12. 
    A rainy day fund is money set aside for _______________________.
    • A. 

      Unexpected emergencies

    • B. 

      Charitable giving

    • C. 

      Short-term goals

    • D. 

      Long-term goals

  • 13. 
    Financial planning is important no matter what type of post-high school education you plan to pursue.
    • A. 

      True

    • B. 

      False

  • 14. 
    Understanding the opportunity cost of all your purchases is most likely to help you think about and change your __________________________.
    • A. 

      Study habits

    • B. 

      Spending habits

    • C. 

      Educational plans

    • D. 

      Retirement plans

  • 15. 
    People should begin planning for retirement at age _______________.
    • A. 

      50

    • B. 

      20

    • C. 

      30

    • D. 

      40

  • 16. 
    Your gross pay will be reduced by ___________________.
    • A. 

      Car payments

    • B. 

      House payments

    • C. 

      Clothing

    • D. 

      Taxes

  • 17. 
    Adam got his first paycheck and noticed that he only took home $92.50.  He worked 15 hours and made $9.15 per hour.  How much did his employer withold from his paycheck?
    • A. 

      $137.25

    • B. 

      $92.50

    • C. 

      $846.38

    • D. 

      $44.75

  • 18. 
    There are a number of valuable sources of information on the Internet that can be used for financial planning, but you should always use caution and carefully evaluation the quality of information you are receiving.
    • A. 

      True

    • B. 

      False

  • 19. 
    What is the current minimum wage in Connecticut as of January 1, 2015?
    • A. 

      $8.75

    • B. 

      $10.10

    • C. 

      $7.25

    • D. 

      $9.15

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