Money Wise Quiz

Question 1

How do I budget for seasonal expenses?

Estimate cost and save throughout the year.

Use emergency savings because you didn't an emergency this year.

Apply for a new credit card and pay the minimum payment.

Question 2

How do I budget for irregular income?

There's no need to budget in months of high income.

Spend everything above the average income.

Base your budget on your lowest expected income.

Question 3

What's the impact of inflation on my budget?

Inflation does not affect a budget.

Inflation decreases the cost of goods.

Inflation increases the cost of goods.

Question 4

How do I save for a vacation?

Create a sinking fund and contribute monthly.

Use an emergency fund.

Use a credit card and pay later.

Question 5

How do I start saving for an emergency fund?

Pay off all credit card debts and personal loans.

save leftover money after bills and entertainment expenses.

Set aside a fixed percentage of income each month.

Question 6

How do I save money on monthly bills?

Pay bills late to save money upfront.

Negotiate bills or cut unnecessary subscriptions.

Avoid tracking bill payments.

Question 7

What is a debt consolidation loan?

A loan to combine multiple debts into one payment.

A loan to buy assets.

A loan to increase your credit score.

Question 8

What is an Annual Percentage Rate (APR)?

The monthly payment amount.

The yearly cost of borrowing, including interest and fees.

The principal balance of a loan.

Question 9

What is an example of unsecured debt?

A car loan.

A mortgage.

A personal loan.

Question 10

How do I decide my risk tolerance?

Always choose high-risk investments.

Assess your financial goals, time horizon, and comfort with losses.

Avoid all risks.

Question 11

What is an IRA?

An acronym for Investment Retirement Accounts.

An Interest Related Account offered by employers.

An Individual Retirement Account with tax benefits.

Question 12

What is investing?

Spending money on non-essentials.

Saving all money in a bank account.

Allocating money to assets with the goal of growing wealth.

Question 13

What is the contribution limit for a 401(k) in 2024?

$47,500

$23,500

$7,000

Question 14

What is the purpose of retirement planning?

To ensure financial security after leaving the workforce.

To only save for medical expenses.

To avoid paying taxes.

Question 15

What is Social Security?

A federal program providing income to retirees, disabled people, and survivors.

A health plan.

A mandatory retirement savings account.

15/15 Completed

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