Money Wise Quiz

Question 1

How do I handle unexpected expenses in my budget?

Use a sinking fund or emergency savings.

Use a credit card and make the minimum monthly payments.

Skip paying other bills to cover the cost.

Question 2

How do I start budgeting from scratch?

Ignore irregular expenses.

Use only cash for all purchases.

List all income and expenses.

Question 3

What's the best way to track daily expenses?

Use a budgeting tool to record every purchase.

Estimate spending at the end of the month.

Only track large purchases.

Question 4

Should I use my emergency fund to pay off debt?

For situations that could have serious consequences.

Yes, you shouldn't have a savings if you owe money.

No, never touch the emergency fund.

Question 5

How do I avoid spending my savings?

Avoid saving for specific goals.

Mix short-term and long-term savings.

Keep the funds in a separate account.

Question 6

How do I deal with rising expenses while trying to save?

Stop saving altogether.

Ignore inflation.

Reduce discretionary spending and increase savings contributions gradually.

Question 7

What is a fixed interest rate?

An interest rate that changes monthly.

An interest rate that decreases annually.

An interest rate that stays the same.

Question 8

What is a good debt-to-income (DTI) ratio to aim for?

Exactly 100%.

35% or less.

50% or more.

Question 9

What is loan forbearance?

A government backed loan forgiveness program.

A pause on loan payments due to financial hardship.

An increase in the loan balance due to high inflation.

Question 10

What is a stock?

The total amount of accounts I have.

A loan to a company or government.

A share of ownership in a company.

Question 11

What is passive investing?

Constantly buying and selling individual stocks.

Avoiding investment related risks and putting everything in savings.

Tracking an index or market instead of actively picking stocks.

Question 12

Whats the difference between a Roth IRA and a traditional IRA?

Roth IRA contributions are pre-tax and Traditional IRA contributions are post-tax.

Traditional IRA is only for seniors and has higher returns.

Roth IRA contributions are post-tax and Traditional IRA contributions are pre-tax.

Question 13

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 14

At what age should you start planning for retirement?

After paying off all debt.

As early as possible.

At age 50.

Question 15

How are Social Security benefits calculated?

Based on your 35 highest-earning years.

A flat rate for everyone.

Based on your 35 lowest-earning years.

15/15 Completed

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