#1
Which of the following is an example of a fixed expense?
Grocery bills
Utility bills
Dining out
Entertainment
#2
What does ROI stand for in finance?
Return on Investment
Rate of Interest
Risk of Investment
Revenue Over Income
#3
Which of the following is an example of a passive income?
Salary from a job
Rent from a property
Profit from selling stocks
Bonus from employer
#4
What does the term 'compound interest' refer to in finance?
Interest calculated on the principal amount only
Interest calculated on both the initial principal and the accumulated interest
Interest paid at a fixed rate annually
Interest earned on investments
#5
Which of the following is an example of a liability?
Savings account
Home mortgage
Stock investment
Retirement fund
#6
What is the concept of 'opportunity cost' in economics?
The total cost of a product or service
The cost of alternatives forgone in making a decision
The cost of production
The cost of goods sold
#7
What does APR stand for in the context of loans?
Average Payment Rate
Annual Percentage Rate
Accrued Payment Ratio
Asset Position Ratio
#8
What is the 'Rule of 72' used for in finance?
Calculating compound interest
Determining inflation rates
Estimating investment returns
Predicting stock market trends
#9
Which of the following is NOT a type of investment?
Stocks
Bonds
Savings accounts
Mortgages
#10
What is the purpose of a budget in personal finance?
To limit spending
To track income
To plan for future expenses
All of the above
#11
What does the term 'asset allocation' refer to in investing?
Distribution of investments among different asset classes
Maximizing return on investment
Choosing individual stocks
Trading options
#12
What is the primary purpose of insurance in personal finance?
To invest money
To protect against financial losses
To maximize returns
To avoid taxes
#13
What does the term 'liquidity' refer to in finance?
Ability to convert assets into cash quickly
Total value of assets
Stability of the stock market
Rate of inflation
#14
What is the purpose of diversification in investment?
To concentrate all investments in one asset
To reduce risk by spreading investments across various assets
To minimize taxes
To maximize returns
#15
What is the purpose of an emergency fund in personal finance?
To invest in high-return assets
To cover unexpected expenses
To save for retirement
To pay off debts
#16
What does the term 'equity' refer to in finance?
Ownership interest in a company
Short-term debt
Return on investment
Market value of a property
#17
What does the term 'cost of capital' refer to in finance?
The interest rate on a loan
The total expenses incurred by a company
The return on investment
The opportunity cost of making a specific investment