Financial Planning and Social Safety Nets Quiz

Test your financial knowledge with questions on budgeting, social safety nets, investment strategies, and insurance needs.

#1

What is the primary purpose of creating a budget?

To limit spending
To increase debt
To save money
To make it rain
#2

Which of the following is NOT typically considered a component of a comprehensive financial plan?

Investments
Insurance
Shopping spree
Retirement planning
#3

What is the purpose of unemployment insurance?

To provide financial assistance to those who lose their jobs
To increase job opportunities
To reduce inflation
To fund government projects
#4

What is the purpose of a health savings account (HSA)?

To pay for healthcare expenses
To fund retirement
To buy luxury items
To gamble in the stock market
#5

What is the purpose of emergency savings?

To fund vacations
To cover unexpected expenses
To buy luxury items
To invest in stocks
#6

What does the term '401(k)' refer to?

A type of tax form
A retirement savings plan
A type of loan
A budgeting technique
#7

What is the purpose of diversification in investment?

To put all eggs in one basket
To minimize risk
To maximize risk
To ignore market trends
#8

Which of the following is NOT a characteristic of a Roth IRA?

Contributions are tax-deductible
Withdrawals in retirement are tax-free
Income limits for eligibility
No required minimum distributions
#9

Which of the following is NOT a social safety net program in the United States?

Social Security
Medicare
Snapchat
Medicaid
#10

Which of the following is NOT a factor to consider when evaluating insurance needs?

Income level
Number of pets
Dependents
Existing debts
#11

Which of the following is NOT a benefit of investing in real estate?

Potential for rental income
Diversification of portfolio
Limited liquidity
Guaranteed returns
#12

Which of the following is NOT a type of insurance commonly used in financial planning?

Life insurance
Home insurance
Pet insurance
Disability insurance

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