Money Wise Quiz

Question 1

How do I categorize expenses in my budget?

Use only one category for all expenses.

Assign a random category to each expense.

Group expenses into needs, wants, and savings.

Question 2

What's the impact of inflation on my budget?

Inflation decreases the cost of goods.

Inflation increases the cost of goods.

Inflation does not affect a budget.

Question 3

How do I budget for irregular income?

Spend everything above the average income.

Base your budget on your lowest expected income.

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

Question 4

What’s the best way to save if I have an irregular income?

Save inconsistently without planning.

Base savings on your lowest expected income.

Save only during high-income months.

Question 5

What’s the best way to save for a down payment on a house?

Invest all savings in stocks.

Use a checking account.

Open a high-yield savings account or CD.

Question 6

What’s the 80/20 rule in saving?

Save only when you have 20% of income left over.

Save 20% of your income and use 80% for expenses.

Save 80% of your income.

Question 7

What is an amortization schedule?

A table showing how a payment is applied to principal and interest.

A breakdown of monthly expenses that's generated after creating a budget.

A schedule provided by a loan officer listing all of your debts and repayment dates.

Question 8

What is considered good debt?

Debt used to invest in your future, like education or a mortgage.

Any debt with a low interest rate.

A credit card or personal loan.

Question 9

What is a good credit score range?

700 - 800

800+

600 - 700

Question 10

What is dollar-cost averaging?

Investing a fixed amount regularly regardless of market conditions.

Knowing when the market is going up and down, using the "Time the Market" strategy.

Investing only when the market is high.

Question 11

What is an ETF?

A private savings account.

A government-issued bond.

A fund that tracks an index, traded like a stock.

Question 12

What is an expense ratio?

The commission for buying stocks.

The cost of managing a fund, expressed as a percentage.

A loan's interest rate.

Question 13

What is a SEP IRA?

A Simplified Employee Pension IRA for self-employed individuals.

A government pension plan.

A stock-trading account.

Question 14

Why is it important to consider inflation in retirement planning?

Inflation has no impact on retirees.

Inflation tends to decrease overtime.

Inflation erodes the purchasing power.

Question 15

What is full retirement age for Social Security benefits?

55 years.

66-67 years, depending on your birth year.

70 years for everyone.

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