#1
What is the primary purpose of a budget in personal finance?
To track daily activities
To restrict spending
To achieve financial goals
To impress others
#2
What does the term 'HSA' stand for in relation to personal finance and healthcare?
Health Savings Account
Home Security Assessment
High-Speed Access
Housing and Shelter Allowance
#3
What is the purpose of a 'credit score' in personal finance?
To measure the number of credit cards owned
To assess creditworthiness
To determine monthly income
To calculate taxes owed
#4
What does the 'FICO score' primarily measure in personal finance?
Income level
Creditworthiness
Investment performance
Savings rate
#5
What is the purpose of the 'debt snowball' method in personal finance?
Paying off high-interest debt first
Consolidating all debts into one
Gradually increasing debt over time
Ignoring debt repayment
#6
What does the term '401(k)' commonly refer to in employment benefits?
Medical insurance plan
Retirement savings plan
Employee bonus program
Flexible work hours
#7
In personal finance, what is the 'emergency fund' used for?
Investing in stocks
Unexpected expenses
Luxury vacations
Buying a new car
#8
What is the difference between a traditional IRA and a Roth IRA in personal finance?
Tax-free withdrawals in Roth IRA
Tax-deductible contributions in traditional IRA
Both a and b
Neither a nor b
#9
In the context of employment benefits, what is 'vesting'?
Employee training program
The process of becoming the CEO
The right to access retirement funds
Employee recognition ceremony
#10
In employment benefits, what does the term 'vested stock options' refer to?
Stock options that have matured
Stock options owned by executives
Stock options that can be sold
Stock options that an employee can exercise
#11
What is the purpose of 'diversification' in investment strategy?
Concentrating all investments in one asset class
Spreading investments across different asset classes
Avoiding investments altogether
Investing only in high-risk assets
#12
What is the purpose of a 'W-4 form' in the context of employment?
Job application form
Tax withholding form
Performance evaluation form
Employee handbook acknowledgment
#13
What does the term 'ROI' stand for in personal finance?
Return on Investment
Rate of Inflation
Repayment of Interest
Risk of Insolvency
#14
What is the 'debt-to-income ratio' used to assess in personal finance?
Credit score
Savings rate
Ability to repay debts
Investment performance
#15
What is the purpose of a '529 plan' in the context of saving for education expenses?
Tax-free retirement savings
Tax-advantaged savings for education
Healthcare savings account
Real estate investment fund
#16
What is the significance of the 'Federal Reserve' in the context of personal finance?
Tax collection agency
Central banking system
Social security administration
Investment advisory board
#17
What is the purpose of 'term life insurance' in personal finance?
Build cash value over time
Provide coverage for a specific term
Guarantee lifetime coverage
Offer investment opportunities