A Quiz On Personal Finance! Trivia

1. If your bank account is overdrawn and goes negative you will be charged a ________ fee.

Deposit

Credit

Overdraft

Balance

2. During Hurricane Katrina, many homeowners did not have sufficient property insurance to cover the losses of their homes. What insurance would you purchase to properly insure your home in addition to a basic homeowner's insurance policy to protect against water damage?

Earthquake insurance

Flood insurance

Personal liability insurance

Renter's insurance

Hurricane Katrina flooded people's houses. People that had no flood insurance didn't get paid any money to rebuild.

Explanation

Hurricane Katrina flooded people's houses. People that had no flood insurance didn't get paid any money to rebuild.

3. What is a mortgage?

Car Loan

College Loan

Home Loan

Vacation Loan

4. If you want to rent property like an apartment you will need to sign a ________which obligates you to pay to rent and follow the rules of the contract.

Foreclosure

Secured Loan

Lease

Down Payment

5. A good credit score is around 350 while a bad score is 750-850.

True

False

The higher the score the better with 750-850 being excellent. 350 is very bad and you would be denied loans.

Explanation

The higher the score the better with 750-850 being excellent. 350 is very bad and you would be denied loans.

6. What type of car insurance is required by law in Mississippi and fixes the other person's car when the accident is your fault?

Deductible

Homeowners

Coverage

Liability.

7. The form used to report the taxable income a worker received during the calendar year is: Hint: *This is the form you get from your job in January every year that you need to file taxes!

Form W-4.

Form W-2.

Form 1040EZ.

Form 1099-INT

8. If I tried to get insurance for a roll of toilet tissue it would be considered a __________ because it is a product that is disposable.

Insurable Risk

Economic Risk

Uncontrollable Risk

Non-Insurable Risk

9. A type of insurance that protects against financial loss as the result of injury or illness is:

Bonding.

Health.

Life.

Property

10. Nick Rhodes owns a home in Edmond, Oklahoma, and pays $665 per year in insurance on his home. The $665 payment he makes is an example of a________

Premium.

Claim

peril.

Deductible

11. When you stop paying your mortgage payment the bank will put your house in ___________ and try and sell it.

Cosigner

Deductible

Foreclosure

Bankruptcy

12. Dan is an office worker and gets paid a monthly salary. If he signs a work contract with a yearly salary of $45,000 what would he get paid monthly?

$7,500

$1,500

$123.29

$3,750

13. You want to buy a shirt with an original selling price of $75.00 and the markdown(discount) is 25%. What is the new price after the markdown?

$20.34

$64.29

$56.25

$55.20

75.00 x .25= $18.75 markdown then 75.00-18.75= $56.25 is new price after markdown

Explanation

75.00 x .25= $18.75 markdown then 75.00-18.75= $56.25 is new price after markdown

14. When you purchase snacks at a store you will pay______ taxes?

Federal

State

Sales

Property

15. The real estate agent that sells a house would most likely be paid by____________?

Commission

Wage

Royalties

Salary

16. A banking method for estimating how long it will take compound interest to double your money?

Rule of 72

Compounding Law

Rule of 45

Double Rule

17. If you have 3 credit cards with high interest you can combine those into one more affordable loan with lower interest. This is also called a loan_______________________.

Tuition

Mortgage

Consolidation

Foreclosure

18. Which of the following is a type of retirement plan offered by your employer?

Stock Market

Checking Account

401k

Social Security

401k is only offered by your employer.

Explanation

401k is only offered by your employer.

19. If you need to set up a direct deposit for your paycheck to go directly into your bank account, what piece of information does your employer need off your account?

Check number

Memo line

Numerical amount

Routing number

20. A type of interest rate that stays the same over the life of the loan.

Fixed Interest Rate

Variable Interest Rate

Direct Interest Rate

Liquid Interest Rate

FIXED means stay the same!

Explanation

FIXED means stay the same!

21. Jose's pay is based only on how many bags of apple he picks on the farm. What type of pay is it?

Salary

Wage

Piece-Rate

Overtime

22. Frank sold a house for $235,000. How much does the real estate agent earn if his commission is 6%?

$1,410

$141,000

$14,100

$1.40

235,000 x 0.06

Explanation

235,000 x 0.06

23. What government agency is in charge of collecting taxes in the united states?

IRS (internal Revenue Service)

FBI (Federal Bureau of Investigations)

CIA (Central Intelligence Agency)

ITC (International Tax Collectors)

24. The FDIC insures your bank deposits up to _________________

$1,000

$25,000

$250,000

$1,000,000

25. If someone died and their children received their life insurance policy. The children would be considered their ________________________.

Policy holder

Beneficiary

Insurer

Co-payment

The beneficiary is the person or persons that will receive the contents of a will or life insurance policy after death.

Explanation

The beneficiary is the person or persons that will receive the contents of a will or life insurance policy after death.

26. What are the monthly earnings if the annual earnings are $43,290?

$2903.34

$3614.33

$3607.50

$2219.39

Divide your annual earnings by 12 (months in a year)

Explanation

Divide your annual earnings by 12 (months in a year)

27. After you charge something on your credit card, you have a _________________which is the amount of time you have to pay off your balance before you start paying interest.

Grace period

Balance transfer

Credit limit

Credit rating

28. What type of payment do you commonly make at a doctor's office?

Co-Pay

Deductible

Premium

Claim

29. A tax that pays for health care for people aged 65 and older.

Social Security Tax

State Tax

Medicare Tax

Federal Tax

30. Which of the following would charge the highest fees and interest rates for borrowing money?

Retail Bank

Credit Union

Payday Lender

Savings and Loan

Payday lenders or Check Cashing Stores charge the highest fees and should be AVOIDED.

Explanation

Payday lenders or Check Cashing Stores charge the highest fees and should be AVOIDED.

31. Which of the following is a special bank that requires you to be invited to join and is run by its members?

Retail Bank

Credit Union

Payday Lender

Savings and Loan

Payday lenders or Check Cashing Stores charge the highest fees and should be AVOIDED.

Explanation

Payday lenders or Check Cashing Stores charge the highest fees and should be AVOIDED.

32. ___________ is the amount of money you made off an investment. For example, you buy some land as an investment for $100,000 and sell it for $150,000. You made $50,000.

Gross Pay

Sales Tax

Capital gains

Audit

33. Comprehensive insurance coverage is needed when

Injuries caused by a driver without insurance.

Damage to your car in an accident for which you were at fault.

Damage to your car caused by wind, hail, fire, or flood.

Damage to a neighbor's tree caused by your car.

Comprehensive Insurance is needed to protect against "Acts of God" tornados, floods, deer, etc....

Explanation

Comprehensive Insurance is needed to protect against "Acts of God" tornados, floods, deer, etc....

34. Your dog runs out in front of you and you swerve to and hit a tree. What type of insurance would fix your car?

Property damage liability

Collision

Comprehensive

Uninsured motorist

35. State Farm, Allstate, and Progressive would be examples of a ______________?

Economic Risk

Policy Holder

Risk

Insurer

36. Which is NOT a common deduction taken out of your paycheck?

Health Insurance

Vision Insurance

Dental Insurance

Therapy Insurance

37. On your paystub, money is deducted from your paycheck each money for Medicare and Social Security, which are federal programs that provide benefits for retirees, disabled people, and children of deceased workers. What is another name for this taxon your paystub?

IRS

Net Pay

FICA

1040EZ

38. Jonathon had a severe back injury and required 3 surgeries. His medical bills totaled $18,000. Luckily, he had insurance and only had to pay $1,000. What was his payment called?

Claim

Deductible

Human Risk

Liability Insurance

39. A loan where you pledge something valuable as collateral is a________________ and a loan that is only based on your credit worthiness is a ________________ .

Secure loan, Unsecure Loan

Unsecure Loan, Secure Loan