Personal Financial Planning #1

45 Questions | Total Attempts: 185

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Financial Management Quizzes & Trivia

Personal Financial planning quiz on credit and basics of financial planning


Questions and Answers
  • 1. 
    What does A.P.R stand for?
    • A. 

      Annual Percentage Ratio

    • B. 

      Annual Percentage Rate

    • C. 

      Annuity Percentage Rate

    • D. 

      Actual Purchase Ratio

  • 2. 
    Economics is the study of how wealth is created and distributed.
    • A. 

      True

    • B. 

      False

  • 3. 
    What is financial literacy?
    • A. 

      The vocabulary needed to manage one's personal finances

    • B. 

      The ability to balance a check book

    • C. 

      The ability to accurately gauge A.P.R

    • D. 

      Understanding the rules of credit

  • 4. 
    What is another name for Annual Percentage Rate or A.P.R.?
    • A. 

      Interest

    • B. 

      Savings

    • C. 

      Bonds

    • D. 

      Investments

  • 5. 
    Which of the following do most Americans use to pay for a home loan?
    • A. 

      Using credit cards

    • B. 

      Repossessed Loans

    • C. 

      Car Loans from the Bank

    • D. 

      Mortgage Loans

  • 6. 
    What is the first step in building a financial portfolio for yourself?
    • A. 

      Determine your current financial situation

    • B. 

      Estimate your income and expenses ten years from now

    • C. 

      Create a financial excel sheet

    • D. 

      Decide what you want your job to be in the future

  • 7. 
    You should never change or alter a financial plan regardless of the situation.
    • A. 

      True

    • B. 

      False

  • 8. 
    Which of the following is an example of a personal financial statement?
    • A. 

      Bank Statements

    • B. 

      Personal Budgets

    • C. 

      Cash Flow Statement

    • D. 

      All of the Above

    • E. 

      None of the Above

  • 9. 
    What does the acronym S.M.A.R.T represent?
    • A. 

      Specific, Measurable, Action Oriented, Realistic, Timely

    • B. 

      Superficial, Measured, Acceptable, Renumbered, Tedious

    • C. 

      Special, Median, Adopted, Redistributed, Tenacious

    • D. 

      Studious, Men, Are, Really, Tired

  • 10. 
    What is a consequence of choice?
    • A. 

      Opportunity Cost

    • B. 

      Evaluation

    • C. 

      Scarcity

    • D. 

      Creativity

  • 11. 
    How often should you review and revise your personal financial plans?
    • A. 

      Once a decade

    • B. 

      Once in high school, college, and prior to having a child

    • C. 

      Once a year

    • D. 

      Once a year or when significant events occur

  • 12. 
    Which company will be facing an I.P.O this upcoming spring?
    • A. 

      Google

    • B. 

      MySpace

    • C. 

      AT&T

    • D. 

      Facebook

  • 13. 
    What does I.P.O stand for in terms of financial public offerings in the stock market?
    • A. 

      Initial Public Offering

    • B. 

      Imagining Peaceful Offerings

    • C. 

      Investment Public Offering

    • D. 

      Institution Promises Olives

  • 14. 
    Facebook is valued anywhere from 75 billion to 100 billion
    • A. 

      True

    • B. 

      False

  • 15. 
    How long should short term goals last?
    • A. 

      One Week

    • B. 

      Less than One Year

    • C. 

      Two Years

    • D. 

      One Month

  • 16. 
    What is the name of the balance for your credit card?
    • A. 

      Average Daily Balance

    • B. 

      Interest Rate Charges

    • C. 

      Homeowners' Insurance

    • D. 

      A.P.R.

  • 17. 
    Intermediate financial goals should last between one to five years
    • A. 

      True

    • B. 

      False

  • 18. 
    Long-term financial goals should last over five years.
    • A. 

      True

    • B. 

      False

  • 19. 
    What is the one of the most popular forms of credit?
    • A. 

      Debit Cards

    • B. 

      Credit Cards

    • C. 

      Cash Money

    • D. 

      Checking Accounts

  • 20. 
    Shopping around for a credit card is not something you should consider as a consumer
    • A. 

      True

    • B. 

      False

  • 21. 
    What is a credit limit?
    • A. 

      A determined set amount of money on a credit card

    • B. 

      An overdraft protection number on your checking account

    • C. 

      A type of personal investment strategy

    • D. 

      A limited amount of personal net worth

  • 22. 
    What does pin stand for in terms of your credit or debit card?
    • A. 

      Personal Identification Number

    • B. 

      Professional Insurance Name

    • C. 

      Punctual Insurance Necessity

    • D. 

      Persistent Insistent Nonexistent

  • 23. 
    What is a pin number?
    • A. 

      A specific number designed by the bank

    • B. 

      A specific and private number created by the card user

    • C. 

      A type of credit card

    • D. 

      A type of good luck charm

  • 24. 
    What is diminished marginal utility?
    • A. 

      Refers to satisfaction decreasing with each use

    • B. 

      Refers to the opportunity cost of choosing apples overs pears

    • C. 

      Is a business term and does not impact personal finance

    • D. 

      Refers only to specific income taxes

  • 25. 
    When you eat a special meal and attempt to recreate that meal and your satisfaction diminishes afterwards. That is an example of diminishing marginal utility.
    • A. 

      True

    • B. 

      False

  • 26. 
    What is inflation?
    • A. 

      Representation of falling prices

    • B. 

      The total value of all goods

    • C. 

      A steady rise in the general level of prices

    • D. 

      Your actual real income

  • 27. 
    What does GDP represent?
    • A. 

      Gross Domestic Product

    • B. 

      General Domestic Production

    • C. 

      Generating Dollars Program

    • D. 

      Gross Distribution Positioning

  • 28. 
    What does the acronym CPI pertain to in terms of personal finance?
    • A. 

      Consumer Price Index

    • B. 

      Customers Pricing Individually

    • C. 

      Consumer Producers Index

    • D. 

      Controlling Production Independence

  • 29. 
    What does the GDP measure?
    • A. 

      The value of all expenditures by the United States Government

    • B. 

      The value of all goods and services produced by workers in the US

    • C. 

      The value of all goods and services produced by the government and United States workers

    • D. 

      The net value of all goods in the world

  • 30. 
    When prices are rising, what must an individual's income also must do to keep pace?
    • A. 

      Decrease to provide purchasing stability

    • B. 

      Increase to match inflation

    • C. 

      Decrease to match productivity

    • D. 

      Remain the same

  • 31. 
    What does real income reflect?
    • A. 

      Minimal amount of purchasing power of companies

    • B. 

      Maximum purchasing power of money

    • C. 

      The buying power of your nominal income

  • 32. 
    What is another name for nominal income?
    • A. 

      Money Income

    • B. 

      Income

    • C. 

      Deflation

    • D. 

      Inflation

  • 33. 
    When inflation rises, the federal reserve attempts to print money to provide more dollars to individuals.
    • A. 

      True

    • B. 

      False

  • 34. 
    When is the first quarter of the United States economic business cycle?
    • A. 

      January through April

    • B. 

      October through December

    • C. 

      October through January 31

    • D. 

      July through August

  • 35. 
    What is a recession?
    • A. 

      A decline in the business and governmental sector of the economy

    • B. 

      A severe downward phase of the economy

    • C. 

      A period of economic growth

    • D. 

      A period where expansion rivals production

  • 36. 
    When President Obama took office, the United States and most of the global economy was embroiled in a recession.
    • A. 

      True

    • B. 

      False

  • 37. 
    There are four quarters in the United States business cycle.
    • A. 

      True

    • B. 

      False

  • 38. 
    What is the typical age for wealh accumulation for Americans?
    • A. 

      Age 10-24

    • B. 

      Ages 17-55

    • C. 

      Ages 55-75

    • D. 

      Ages 45-75

  • 39. 
    Which of the following best characterizes economic growth in an economy?
    • A. 

      When production is in a decline

    • B. 

      A condition of increasing production and consumption in the economy

    • C. 

      A slight consecutive decline in production

    • D. 

      Four quarter decrease in production

  • 40. 
    A credit card that offers an adjustable APR is a good credit card
    • A. 

      True

    • B. 

      False

  • 41. 
    The United States is currently attempting to move out of which of the following economic cycles?
    • A. 

      Recession

    • B. 

      Depression

    • C. 

      Expansion

    • D. 

      Deceleration of Growth

  • 42. 
    What type of investment would be buying Facebook stock?
    • A. 

      Stock Investment

    • B. 

      Savings Investment

    • C. 

      Bond Investment

    • D. 

      Government Bond Investment

  • 43. 
    How should you structure your investment portfolio?
    • A. 

      All savings accounts to minimize risk

    • B. 

      Balanced approach of stocks, mutual funds, bonds, and savings

    • C. 

      Relying only on Social Security from the government

    • D. 

      A strictly investment strategy utilizing only stock portfolios

  • 44. 
    There is no specific way to predict what the stock market is going to do.
    • A. 

      True

    • B. 

      False