#1
Which of the following is a factor influencing consumer decision-making?
Personal income
Geological formations
Photosynthesis
Newton's laws of motion
#2
What does APR stand for in the context of loans and credit cards?
Average Price Rate
Annual Percentage Rate
Advanced Payment Return
All Purpose Ratio
#3
In the context of investing, what does 'ROI' stand for?
Return on Investment
Rate of Inflation
Risk of Investment
Revenue of Interest
#4
Which of the following is a type of risk associated with investing?
Digital risk
Chemical risk
Social risk
Market risk
#5
What is the primary purpose of a credit score?
To track the number of credit cards a person owns
To evaluate a person's creditworthiness
To determine a person's annual income
To calculate the interest rate on savings accounts
#6
Which of the following is NOT typically considered a fixed expense in a budget?
Rent or mortgage payment
Grocery bills
Car insurance premiums
Student loan payments
#7
Which of the following is NOT a stage in the consumer decision-making process?
Evaluation of alternatives
Post-purchase behavior
Ignition
Problem recognition
#8
What concept suggests that consumers make purchases to maximize their overall satisfaction?
Utility theory
Quantum mechanics
Chaos theory
Special relativity
#9
What does the 'Rule of 72' estimate?
The number of months until retirement
The amount of debt accrued annually
The time it takes for an investment to double at a fixed annual rate of return
The interest rate on government bonds
#10
What is the primary goal of portfolio diversification?
To minimize returns
To maximize returns
To increase volatility
To decrease risk
#11
What is the term used for a sudden, unexpected event that requires significant financial resources?
Windfall
Bonanza
Emergency
Lottery
#12
Which of the following is a key principle of budgeting?
Spending more than you earn
Saving consistently
Ignoring financial goals
Avoiding tracking expenses
#13
Which financial term refers to the measure of how quickly an asset can be converted into cash without affecting its market price?
Liquidity
Insolvency
Maturity
Amortization
#14
What is the term used for the process of examining an investment's potential return compared to its risk?
Financial algebra
Risk management
Risk assessment
Quantitative easing
#15
What term describes the action of borrowing money to invest with the expectation of earning a greater return than the interest payable on the loan?
Mortgaging
Leveraging
Collateralizing
Subsidizing
#16
What does the acronym 'IRA' stand for in personal finance?
Individual Rental Account
Internal Revenue Association
Individual Retirement Account
Internal Revenue Accreditation
#17
What is the term for a situation where a person spends more money than they earn?
Savings
Budgeting
Debt
Investing