🎓 Personal Finance Foundations - Final Review Quiz! 🧾💰

Question 1

What is an important factor in determining your credit score?

Accepted Answer

Payment history

Question 2

Which of the following is a potential benefit of using a credit card?

Accepted Answer

Building credit history

Question 3

What’s one of the best ways to achieve long-term savings goals like retirement or college?

Accepted Answer

Investing in a 401(k) and 529 plan

Question 4

Which type of interest accumulates over time on both the principal and previously earned interest?

Accepted Answer

Compound interest

Question 5

The term for behavior that fails to follow appropriate or ethical conduct to protect others against unreasonable risk is

Accepted Answer

negligence

Question 6

A lease agreement typically includes:

Accepted Answer

Terms of use for a product or property

Question 7

Social Security benefits are primarily intended to:

Accepted Answer

Provide financial support in retirement

Question 8

What does it mean to “diversify” investments?

Accepted Answer

To invest in a variety of assets to mitigate risk

Question 9

A balance sheet is used to:

Accepted Answer

Show assets and liabilities

Question 10

Which Excel formula calculates the total monthly utility cost for Apartment A if the values are in cells C2 to F2?

Accepted Answer

=sum(C2:F2)

Question 11

What best describes the monetary opportunity cost of going to a movie?

Accepted Answer

the inability to put that money into a savings account

Question 12

What is the role of the Federal Reserve?

Accepted Answer

To regulate the money supply and interest rates

Question 13

What is the purpose of a financial goal?

Accepted Answer

To guide financial decisions

Question 14

The principle of scarcity in economics refers to:

Accepted Answer

Limited resources in the face of unlimited wants

Question 15

Which is associated with an employer matching an employee's contributions dollar for dollar?

Accepted Answer

401K plan

Question 16

Discretionary income is defined as:

Accepted Answer

Money available after covering essentials

Question 17

Which of the following can negatively impact credit history?

Accepted Answer

High credit utilization

Question 18

What’s the first step in planning for long-term goals?

Accepted Answer

budget plan

Question 19

The best way to handle a financial crisis is to:

Accepted Answer

Create a detailed financial plan

Question 20

Which of the following best describes a diversified investment portfolio?

Accepted Answer

Spreading investments across various assets to reduce risk

Question 21

Which financial product typically requires a significant down payment?

Accepted Answer

Mortgage

Question 22

A credit card statement includes:

Accepted Answer

Amount due and minimum payment

Question 23

What is the function of insurance?

Accepted Answer

To protect against financial loss

Question 24

Which of the following is NOT an investment option?

Accepted Answer

Checking accounts

Question 25

There are several steps that must be taken when taking out a loan to repair damage to a home. What is the first step?

Accepted Answer

get two or more estimates on the repair

Question 26

Which of the following is NOT a benefit of budgeting?

Accepted Answer

Increases debt

Question 27

What is an unethical action by a financial advisor?

Accepted Answer

Giving client info to a charity

Question 28

A risk assessment helps you to:

Accepted Answer

Identify and prepare for financial risks

Question 29

When purchasing a home, what is typically the largest upfront cost?

Accepted Answer

Closing costs

Question 30

How is a bank service charge recorded during reconciliation?

Accepted Answer

Subtracted from bank balance

Question 31

Personal financial literacy involves understanding

Accepted Answer

Basic financial concepts and tools

Question 32

Which statement concerning bankruptcy is true?

Accepted Answer

It affects credit for years

Question 33

Calculate the amount of interest on $1,200 at 15% for 90 days, figured on the basis of a 360-day year.

Accepted Answer

$45.00

Question 34

When is it usually advisable to use a credit card?

Accepted Answer

For emergencies and planned expenses

Question 35

Why might an electronic funds transfer not appear on the day it was requested (Sunday)?

Accepted Answer

It will process on the next business day

Question 36

Which of the following describes a budget surplus?

Accepted Answer

Spending less than you earn

Question 37

A high debt-to-income ratio indicates:

Accepted Answer

High levels of debt compared to income

Question 38

One advantage of owning one's own business is...

Accepted Answer

more personal freedom

Question 39

An individual is buying groceries, which is considered an economic...

Accepted Answer

need

Question 40

Sam buys 5 books at $12 each and 4 magazines at $6 each. He gets 15% off the total. What does he pay?

Accepted Answer

$71.40

🎓 Personal Finance Foundations - Final Review Quiz! 🧾💰

Questions 40

🎓 Personal Finance Foundations - Final Review Quiz! 🧾💰

Questions 40