Amazing Quiz On Personal Finance!

25 Questions | Total Attempts: 3871

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Amazing Quiz On Personal Finance! - Quiz

This is your final for Personal Finance Class. This is a comprehensive test over all topics you have learned this semester.


Questions and Answers
  • 1. 
    Financial success is primarily the result of setting long term goals and developing a plan to achieve them.
    • A. 

      True

    • B. 

      False

  • 2. 
    If you are going to increase your wealth, it is vitally important for you to set aside funds regularly into savings and investments.
    • A. 

      True

    • B. 

      False

  • 3. 
     The purpose of a budget is to increase awareness of how funds are spent and to help the individual or household develop a plan to control spending more effectively and save for the future.
    • A. 

      True

    • B. 

      False

  • 4. 
     It makes sense to set aside funds regularly into a special savings account so you will be better able to deal with future surprise expenses.
    • A. 

      True

    • B. 

      False

  • 5. 
    According to Dave Ramsey you should begin saving by setting aside $1000 in an emergency fund.
    • A. 

      True

    • B. 

      False

  • 6. 
    Murphy's Law says that whatever can go wrong will go wrong.
    • A. 

      True

    • B. 

      False

  • 7. 
    You should invest using borrowed money.
    • A. 

      True

    • B. 

      False

  • 8. 
      A credit card is an emergency fund.
    • A. 

      True

    • B. 

      False

  • 9. 
     The use of credit cards to purchase and finance spending on items like food, clothing, and entertainment is highly likely to lead to serious financial problems.
    • A. 

      True

    • B. 

      False

  • 10. 
     The interest rates charged on outstanding credit card balances are usually quite low because these loans are highly secure.
    • A. 

      True

    • B. 

      False

  • 11. 
     Saving and the power of compound interest can make it possible for you to consume more and achieve a higher living standard in the future.
    • A. 

      True

    • B. 

      False

  • 12. 
     If career objectives may cause you to move from an area during the next two or three years, you should purchase a home if your mortgage payments are less than your rental costs.
    • A. 

      True

    • B. 

      False

  • 13. 
      A history of late payments on credit cards, a defaulted car loan and an unstable employment history will negatively affect your credit score.
    • A. 

      True

    • B. 

      False

  • 14. 
     Your take home pay will be less than your gross earnings because of taxes and benefits provided through payroll deductions
    • A. 

      True

    • B. 

      False

  • 15. 
       If you want to avoid financial anxiety, it would be wise to gradually increase the outstanding balance on your credit cards to the credit limit.
    • A. 

      True

    • B. 

      False

  • 16. 
      A monthly budget can help you achieve financial security by
    • A. 

      Helping you choose stocks that are most likely to increase in price.

    • B. 

      Reducing the likelihood that you will face unexpected expenditures for maintenance and repairs.

    • C. 

      Expanding the borrowing limits on your existing credit cards and increasing the number of credit cards you hold.

    • D. 

      Increasing your financial awareness and helping you allocate your funds more effectively.

  • 17. 
       Which of the following is the best place to set funds aside for “surprise” expenditures?
    • A. 

      The stock market

    • B. 

      Your regular checking account.

    • C. 

      A savings account.

    • D. 

      Ownership of real estate.

  • 18. 
    A resume is used for
    • A. 

      Providing a snapshot of your work history and skills

    • B. 

      Providing proof of income.

    • C. 

      Providing information about your credit worthiness.

    • D. 

      Providing a government agency of your place of birth.

  • 19. 
    Personal financial success is primarily the result of
    • A. 

      Generous welfare and unemployment programs.

    • B. 

      Spending more than you earn.

    • C. 

      Doing what you are passionate about regardless of whether others value it.

    • D. 

      Providing services others value while working hard to achieve financial goals.

  • 20. 
    Which of the following will help you generate income and accumulate wealth?
    • A. 

      Getting another credit card so you will have more borrowing power in the future.

    • B. 

      Borrowing funds in order to increase your current consumption.

    • C. 

      Setting aside funds regularly into savings and investments

    • D. 

      Making only the minimum monthly payment on your outstanding credit card balances.

  • 21. 
    A couple that is currently renting but is thinking about a move to another city in the near future should.
    • A. 

      Buy if they can arrange a monthly mortgage payment less than their current rent.

    • B. 

      Continue renting because the real estate is not easily convertible into cash and costly to buy and sell.

    • C. 

      Buy because real estate will always increase in value.

    • D. 

      Continue renting because rental payments are tax deductible but mortgage interest payments are not.

  • 22. 
    A monthly budget is an effective tool that will help you
    • A. 

      Spend a larger share of your earnings now

    • B. 

      Manage your spending and save for the future in order to accumulate wealth

    • C. 

      Keep your transportation costs low by purchasing a new car every tow or three years.

    • D. 

      Select stocks that are more likely to increase in value over the long run.

  • 23. 
    What information do you provide on a check?
    • A. 

      The time that you want your money to come out of the bank.

    • B. 

      The amount of money to be withdrawn from the bank.

    • C. 

      Promise to make monthly payments to your student loans.

    • D. 

      How much money you want to save.

  • 24. 
    You are getting ready for your first interview. You should bring all of the following with you EXCEPT
    • A. 

      ID or Drivers Lisence

    • B. 

      Birth Cerificate

    • C. 

      Social Security Card

    • D. 

      Report Card

  • 25. 
    When should you begin saving your money?
    • A. 

      Right away.

    • B. 

      When you finish high school

    • C. 

      When you reach retirement

    • D. 

      When you are 30.

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