A Quiz On Personal Finance! Trivia

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  • 1/41 Questions

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

    • Deposit
    • Credit
    • Overdraft
    • Balance
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About This Quiz


A quiz on personal finance! This type of finance is centered on individual expenses, savings and investments. Do you know the number of taxes and rates that are deducted from your paychecks and how to amount for commissions? Worry not as the quiz below will help you get some practice on understanding on some basic finance concepts and how to use them in making financial decision. All the best!

A Quiz On Personal Finance! Trivia - Quiz

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  • 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  

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

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  • 3. 

    What is a mortgage?

    • Car Loan

    • College Loan

    • Home Loan

    • Vacation Loan

    Correct Answer
    A. Home 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

    Correct Answer
    A. Lease
  • 5. 

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

    • True

    • False

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

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  • 6. 

    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  

    Correct Answer
    A. Form W-2.
  • 7. 

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

    • Bonding.

    • Health.

    • Life.

    • Property  

    Correct Answer
    A. Health.
  • 8. 

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

    • Cosigner

    • Deductible

    • Foreclosure

    • Bankruptcy

    Correct Answer
    A. Foreclosure
  • 9. 

    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

    Correct Answer
    A. Premium. 
  • 10. 

    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.

    Correct Answer
    A. Liability.
  • 11. 

    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

    Correct Answer
    A. $3,750
  • 12. 

    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

    Correct Answer
    A. Non-Insurable Risk
  • 13. 

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

    • Federal

    • State

    • Sales

    • Property

    Correct Answer
    A. Sales
  • 14. 

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

    • Commission

    • Wage

    • Royalties

    • Salary

    Correct Answer
    A. Commission
  • 15. 

    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

    Correct Answer
    A. $56.25
    Explanation
    75.00 x .25= $18.75 markdown then 75.00-18.75= $56.25 is new price after markdown

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  • 16. 

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

    • Stock Market

    • Checking Account

    • 401k

    • Social Security

    Correct Answer
    A. 401k
    Explanation
    401k is only offered by your employer.

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  • 17. 

    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

    Correct Answer
    A. Rule of 72
  • 18. 

    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

    Correct Answer
    A. Consolidation
  • 19. 

    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

    Correct Answer
    A. Piece-Rate
  • 20. 

    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

    Correct Answer
    A. $14,100
    Explanation
    235,000 x 0.06

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  • 21. 

    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

    Correct Answer
    A. Routing number
  • 22. 

    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

    Correct Answer
    A. Fixed Interest Rate
    Explanation
    FIXED means stay the same!

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  • 23. 

    What type of payment do you commonly make at a doctor’s office?

    • Co-Pay

    • Deductible

    • Premium

    • Claim

    Correct Answer
    A. Co-Pay
  • 24. 

    The FDIC insures your bank deposits up to _________________

    • $1,000

    • $25,000

    • $250,000

    • $1,000,000

    Correct Answer
    A. $250,000
  • 25. 

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

    • $2903.34

    • $3614.33

    • $3607.50

    • $2219.39

    Correct Answer
    A. $3607.50
    Explanation
    Divide your annual earnings by 12 (months in a year)

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  • 26. 

    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)

    Correct Answer
    A. IRS (internal Revenue Service)
  • 27. 

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

    • Policy holder

    • Beneficiary

    • Insurer

    • Co-payment

    Correct Answer
    A. Beneficiary
    Explanation
    The beneficiary is the person or persons that will receive the contents of a will or life insurance policy after death.

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  • 28. 

    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

    Correct Answer
    A. Grace period
  • 29. 

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

    • Social Security Tax

    • State Tax

    • Medicare Tax

    • Federal Tax

    Correct Answer
    A. Medicare 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

    Correct Answer
    A. Payday Lender
    Explanation
    Payday lenders or Check Cashing Stores charge the highest fees and should be AVOIDED.

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  • 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

    Correct Answer
    A. Credit Union
    Explanation
    Payday lenders or Check Cashing Stores charge the highest fees and should be AVOIDED.

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  • 32. 

    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.

    Correct Answer
    A. Damage to your car caused by wind, hail, fire, or flood.
    Explanation
    Comprehensive Insurance is needed to protect against "Acts of God" tornados, floods, deer, etc....

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  • 33. 

    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

    Correct Answer
    A. Collision
  • 34. 

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

    • Economic Risk

    • Policy Holder

    • Risk

    • Insurer

    Correct Answer
    A. Insurer
  • 35. 

    ___________ 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

    Correct Answer
    A. Capital gains
  • 36. 

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

    • Health Insurance

    • Vision Insurance

    • Dental Insurance

    • Therapy Insurance

    Correct Answer
    A. Therapy Insurance
  • 37. 

    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

    Correct Answer
    A. Secure loan, Unsecure Loan
  • 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

    Correct Answer
    A. Deductible
  • 39. 

    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

    Correct Answer
    A. FICA
  • 40. 

    What credit law requires lenders to be show the true cost of credit and not hide any information from the borrower?

    • Truth in Lending Act

    • Equal Credit Opportunity Act

    • Fair Debt Collection Practices Act

    • Fair Credit Reporting Act

    Correct Answer
    A. Truth in Lending Act
  • 41. 

    When the credit bureau tries to calculate your credit score which factor is the most important?

    • Amount Owed- total amount of all your credit debt

    • Length of Credit History- how many years you've had cards

    • Payment History- paying bills on time

    • New Credit- how many new credit cards have you gotten recently

    Correct Answer
    A. Payment History- paying bills on time

Quiz Review Timeline (Updated): Mar 21, 2022 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2022
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 14, 2016
    Quiz Created by
    Andrew Wood
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