#1
What is the recommended percentage of your income to save for emergencies?
#2
Which of the following is a type of consumer debt?
#3
Which of the following is an example of a fixed expense?
Grocery bills
Entertainment expenses
Rent or mortgage payment
Dining out
#4
What is the purpose of a 401(k) retirement account?
To provide health insurance benefits
To save for short-term expenses
To invest in stocks and bonds
To save for retirement
#5
What is the debt snowball method primarily focused on?
Paying off high-interest debt first
Paying off small debts first
Paying off mortgage debt
Paying off student loans
#6
What is the 'minimum payment' on a credit card statement?
The smallest amount you can pay to avoid late fees
The total amount due on the credit card
An optional payment amount
The amount required to pay off the entire balance
#7
What is the purpose of a financial emergency fund?
To invest in the stock market
To cover unexpected expenses
To pay off credit card debt
To fund vacations
#8
What does APR stand for in relation to loans?
Annual Payment Rate
Average Percentage Rate
Annual Percentage Rate
Average Payment Rate
#9
What is the 'snowball method' in the context of paying off debt?
Paying off the debt with the highest interest rate first
Paying off the smallest debt first and then applying those payments to the next smallest debt
Using a credit card to pay off another credit card
Refinancing all debts into one consolidated loan
#10
What is the debt-to-income ratio used for in personal finance?
To measure how much debt you have relative to your income
To calculate your credit score
To determine your net worth
To assess your investment portfolio
#11
What is the purpose of a credit score?
To determine your income level
To assess your borrowing risk
To calculate your net worth
To measure your savings rate
#12
What is the grace period on a credit card?
The time during which you can make purchases without accruing interest
The period after the due date during which you can still make a payment without penalty
The duration for which you can carry a balance without affecting your credit score
The time it takes for a transaction to appear on your credit card statement
#13
What is the concept of 'paying yourself first' in personal finance?
Allocating a portion of your income for savings before paying bills or expenses
Spending all your income on luxuries
Investing in high-risk assets
Paying off debt aggressively
#14
What is the 'debt avalanche' method of paying off debt?
Paying off the debt with the smallest balance first
Paying off the debt with the highest interest rate first
Paying off debts in the order they were acquired
Paying off debts randomly
#15
Which of the following is a potential disadvantage of using a debit card?
Interest charges
Risk of overspending
Building credit history
Cashback rewards
#16
Which of the following factors does NOT typically affect your credit score?
Length of credit history
Income level
Types of credit used
Amount of debt owed