#1
Which of the following is an example of passive income?
Salary from a full-time job
Dividend from stocks
Wages from part-time work
Commission from sales
#2
What is the purpose of a budget in financial decision making?
To limit spending
To plan for future expenses
To track income
All of the above
#3
Which of the following is considered a fixed expense in personal finance?
Grocery bills
Entertainment expenses
Rent or mortgage payments
Restaurant dining
#4
What is the main purpose of an emergency fund?
To invest in the stock market
To save for vacation
To cover unexpected expenses
To purchase luxury items
#5
Which of the following best describes 'earned income'?
Income generated from investments
Income received from employment
Income from rental properties
Income from royalties
#6
In financial terms, what does ROI stand for?
Return on Investment
Rate of Income
Revenue of Interest
Risk of Investment
#7
Which of the following is considered a liability on a balance sheet?
Cash
Inventory
Accounts Receivable
Accounts Payable
#8
Which of the following is an example of active income?
Interest from savings account
Rental income from property
Royalties from book sales
Inheritance from a relative
#9
What is the primary characteristic of capital gains income?
It is earned through labor
It is earned through investment appreciation
It is earned through rental properties
It is earned through business ownership
#10
What type of income is generated from owning shares of a company?
Passive income
Active income
Portfolio income
Capital gains income
#11
What is the primary objective of diversification in investment?
To increase risk
To concentrate investments
To reduce risk
To generate passive income
#12
Which of the following is NOT a factor in determining creditworthiness?
Income level
Age
Credit history
Education level
#13
What is the key advantage of a Roth IRA compared to a Traditional IRA?
Contributions are tax-deductible
Withdrawals are tax-free in retirement
Withdrawals are mandatory at a certain age
There is no limit on contributions
#14
What is the primary purpose of a credit score?
To determine eligibility for loans and credit cards
To track monthly spending
To calculate investment returns
To assess insurance premiums
#15
Which financial ratio is used to assess a company's ability to pay its short-term obligations?
Return on Investment (ROI)
Debt-to-Equity Ratio
Current Ratio
Price-to-Earnings (P/E) Ratio