Personal Finance and Consumer Behavior Quiz
Test your knowledge with questions on personal finance principles, consumer behavior factors, and financial decision biases.
#1
Which of the following is a basic principle of personal finance?
Spend more than you earn
Save regularly and invest wisely
Ignore budgeting
Borrow money for unnecessary expenses
#2
What is the term used to describe the process of converting assets into cash?
Investing
Saving
Liquidity
Budgeting
#3
Which of the following is a potential benefit of creating and sticking to a budget?
Increased debt
Decreased financial stress
Decreased savings
Increased impulsive spending
#4
What is the primary function of a stockbroker in personal finance?
Providing financial advice
Lending money
Selling insurance policies
Executing trades on behalf of clients
#5
What is the term used to describe the process of comparing prices from different vendors before making a purchase?
Impulse buying
Comparison shopping
Brand loyalty
Bulk buying
#6
Which of the following is NOT a factor to consider when setting financial goals?
Specificity
Flexibility
Achievability
Irrelevance
#7
Which of the following is NOT a factor influencing consumer behavior?
Psychological factors
Social factors
Personal factors
Fiscal factors
#8
What is the term used to describe the tendency for individuals to spend more when using credit cards than when using cash?
Credit effect
Cash bias
Credit bias
Cashless spending
#9
What is the rule of 72 used for in personal finance?
Calculating compound interest
Determining the ideal credit card limit
Budgeting monthly expenses
Estimating the time for an investment to double
#10
What is the term used to describe the emotional bias that can lead individuals to make irrational financial decisions?
Behavioral economics
Consumer psychology
Mental accounting
Behavioral finance
#11
Which of the following factors is important to consider when evaluating the risk of an investment?
Potential returns only
Time horizon
Current market trends
Investment location
#12
Which of the following is a characteristic of a fixed-rate mortgage?
Monthly payments that fluctuate
Interest rate that remains constant
Interest rate determined by the market
No down payment required
#13
Which of the following is a characteristic of a good credit score?
Low credit utilization ratio
Late payments
High number of credit inquiries
Maxing out credit cards
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