The Money Diaries Quiz 1: What Do You Know About Personal Finance?

11 Questions | Total Attempts: 373

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The Money Diaries Quiz 1: What Do You Know About Personal Finance? - Quiz

This quiz is to test your knowledge of personal finance. What do you know about your money? Love,


Questions and Answers
  • 1. 
    In the credit card industry, what type of person is a revolver? 
    • A. 

      A person who applies for too many credit cards

    • B. 

      A person who pays their minimum balance every month

    • C. 

      A person who pays off their total credit card balance on time every month

  • 2. 
    Which of these can potentially damage your credit score?Question taken from: howstuffworks.com
    • A. 

      Making late payments

    • B. 

      Closing a credit account with a low balance and high limit

    • C. 

      Making only the minimum monthly payment

  • 3. 
    What is a 401(k) plan?  
    • A. 

      A savings account through the government that is not taxed and grows above the inflation rate.

    • B. 

      A type of retirement account that you only pay income tax on when you make withdrawals.

    • C. 

      A retirement account through your employer. Contributions are made before tax is taken out of your paycheck and most companies match up to a certain amount of your contributions.

  • 4. 
    Government bonds are "fancy IOUs" from Uncle Sam. They provide funding for special projects. You purchase a bond for a specific amount of time and in exchange the government pays you back with interest. 
    • A. 

      True

    • B. 

      False

  • 5. 
    What is the number one reason people go into debt?
    • A. 

      Bad spending habits

    • B. 

      Drug abuse

    • C. 

      Medical bills

  • 6. 
    A question for the early 20 somethings:What should a college student do to take steps towards financial independence? (Check all that apply)
    • A. 

      They should track their income, and track their spending.

    • B. 

      Call an insurance provider about setting up Life Insurance.

    • C. 

      Have an independent checking and savings account at a bank.

    • D. 

      Apply for a credit card - start building credit. (Make sure they know the rules of success).

    • E. 

      Be educated. Learn that know one will care about money management better than you will. Take responsibility for yourself.

  • 7. 
    You start working for a company that offers you a 401(k) retirement plan, the company will match up to 50% of your contribution, what should you do? 
    • A. 

      Don't take money out of your paycheck for a retirement plan you can't touch until you're 65.

    • B. 

      Begin contributing the maximum amount out of your paycheck. You'll be getting free money from your company towards retirement. It's the easiest way for you to start saving.

    • C. 

      Contribute 5% from your paycheck, you need more cash.

  • 8. 
    Taxes: If you get a big tax refund each year, you're having too little withheld from your paycheck.
    • A. 

      True

    • B. 

      False

  • 9. 
    "You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions." (IRS Publication 78)
    • A. 

      True

    • B. 

      False

  • 10. 
    Financial Issues are cited among the Top 5 reasons people file for divorce
    • A. 

      True

    • B. 

      False

  • 11. 
    For my knowledge: I enjoy TheMoneyDiaries.com (doesn't count towards score)
    • A. 

      True

    • B. 

      False

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