Personal Finance and College Planning Quiz
Test your knowledge on financial aid, budgeting, savings plans, and student loans. Prepare for college planning efficiently.
#1
What is a common type of financial aid that does not need to be repaid?
Scholarship
Student loan
Work-study program
Grant
#2
What is the purpose of creating a budget?
To spend as much money as possible
To track income and expenses
To avoid saving money
To invest in stocks
#3
What does FAFSA stand for in the context of college financial aid?
Free Application for Federal Student Aid
Financial Aid for Student Assistance
Federal Aid and Student Support Application
Financial Aid Fund for Student Aid
#4
What is the purpose of a FAFSA?
To apply for federal student loans
To apply for financial aid for college
To apply for scholarships
To apply for work-study programs
#5
Which of the following accounts typically offers the highest interest rate?
Checking account
Savings account
Certificate of deposit (CD)
Money market account
#6
What is the purpose of a 529 plan in college planning?
To provide financial aid to students
To save for college expenses
To pay off student loans
To cover living expenses during college
#7
What is the purpose of a Roth IRA?
To save for retirement with pre-tax contributions
To save for college expenses
To invest in real estate
To provide immediate income
#8
What is the 'Rule of 72' used for in personal finance?
To calculate compound interest
To estimate how long it takes for money to double at a given interest rate
To determine monthly mortgage payments
To assess credit card debt
#9
Which of the following is NOT considered a type of financial aid?
Scholarship
Work-study program
Student loan
Credit card
#10
What is the difference between subsidized and unsubsidized student loans?
Subsidized loans have lower interest rates
Unsubsidized loans require a credit check
The government pays the interest on subsidized loans while the student is in school
Unsubsidized loans have more flexible repayment options
#11
Which of the following is NOT a factor that affects your credit score?
Payment history
Length of credit history
Income level
Types of credit used
#12
What is the purpose of the FICO credit scoring system?
To determine eligibility for federal student loans
To assess credit risk for lenders
To calculate interest rates on mortgages
To evaluate job applicants
#13
Which of the following is NOT a potential consequence of defaulting on student loans?
Garnishment of wages
Loss of professional licenses
Ineligibility for future financial aid
No impact on credit score
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