Quiz Your Personal Finance Knowledge

Not sure if your teen needs a personal finance course?  Use this quiz to test their personal finance knowledge.  Adults are welcomed to test their personal finance knowledge, too!  The quiz contains 20 questions from the Personal Finance: A Working Textbook course.  The quiz does not represent all topics covered in the course.  Take a look at the course Table of Contents on our website at www.p-afs.com to review all subjects taught in the course.  

Quiz Your Personal Finance Knowledge

Question 1

  • If the parents claim the college student as a dependent on their tax returns, they do not have to file an annual tax return.
  • If a college student receives a grant or financial aid, they do not have to file an annual tax return.
  • All college students who earn wages must file an annual tax return.
  • All college students can elect to either file an annual tax return, or file a tax return upon graduation for all the years they were in college.
Which of the following is true regarding taxes for college students who earn wages:

Question 2

  • Gross wages are the monetary funds earned by an employer for work assigned.
  • Gross wages are the benefits given to an employee by an employer.
  • Gross wages are the monetary funds paid to an employee after all deductions are subtracted.
  • Gross wages are the monetary funds earned by an employee in exchange for work completed.
Which of the following defines gross wages:

Question 3

  • Interest income
  • Non-interest income
  • Dividends
  • Future value of investment
Money paid to a shareholder of a company is called:

Question 4

  • 1040
  • 1004EZ
  • 1040EZ
  • 1014EZ
The simple tax form used when a person is not itemizing their deductions is called:

Question 5

  • 15.72%
  • 5.72%
  • 27.84%
  • 17.48%

If total debts equal $25,000 and total assets equal $143,000, what is the debt ratio:

Question 6

  • The difference between a car loan and a house loan.
  • The difference between the value of a house and what is owed on the same house.
  • Debt owed.
  • None of these defines equity.
Which of the following is an example of equity:

Question 7

  • A payday loan is usually a long-term long.
  • A person can take their time paying a payday loan back.
  • A payday loan offers a great deal on interest rates.
  • A payday loan must be paid back when a person receives their next paycheck.
Which of the following is true about a payday loan:

Question 8

  • $115,957
  • $69,273
  • $46,684
  • $185,230
If Bill’s total assets are $115,957 and his total liabilities are $69,273, what is his net worth:

Question 9

  • Short-term liabilities are due after a year or more.
  • Short-term liabilities are due within a year.
  • Short-term liabilities are due when the person feels like paying them.
  • Short-term liabilities are due within 18 months.
When are short-term liabilities due:

Question 10

  • Using credit cards for purchases and paying off the credit card balance each month.
  • Using credit cards for purchases when no cash is available now or in the future to pay off the balance.
  • Not using credit cards.
  • Using credit cards for holds on future purchases such as a hotel stay.
What does using credit cards as a source of cash mean? 

Question 11

  • only in the credit approval process for a loan.
  • to determine if a person is eligible for a checking account in addition to the loan approval process.
  • as a service for businesses as part of the hiring process.
  • only when they think a borrower may be a high-risk.
Financial institutions run credit reports and use FICO scores:

Question 12

  • Once a week.
  • Once a quarter.
  • When they have time.
  • Once a month.

Checking account holders should reconcile their accounts:

Question 13

  • amount owed, new credit, length of credit history, and payment history.
  • amount owed, new credit, payment history, and credit mix.
  • amount owed, new credit, length of credit history, payment history, and credit mix.
  • amount owned, old credit, length of credit history, payment history, and credit mix.
The components of the FICO score are:

Question 14

  • by employers, financial institutions, leasing companies, cell phone companies, and utility companies.
  • only by financial institutions and leasing companies.
  • by financial institutions, leasing companies, and payday loan businesses.
  • only when a person wants to get a loan at a bank.
Credit reports are used:

Question 15

  • are not necessary to obtain or keep.
  • should be kept and logged into an account register.
  • are recorded to track the daily account balance and catching fraud on an account.
  • are only good for returning unwanted merchandise.
  • both b and c.
Receipts for purchases:

Question 16

  • $671.99
  • $699.99
  • $703.76
  • $653.64
What is the monthly loan payment for a 7-year loan for $46,000 at 6% interest (Choose the closest answer.):

Question 17

  • Two hundred, ninety-four, and 57 cents --------------------------------------
  • Two hundred, ninety-four and fifty-seven/100 ----------------------------
  • Two hundred, ninety-four and 57/100 ----------------------------------------
  • Two hundred and ninety-four dollars and 57/100 -------------------------

A check for $294.57 would be written as which of the following on a check:

Question 18

  • increases a person’s wealth.
  • does not increase a person’s wealth.
  • always opens opportunities.
  • should be done whenever possible.
Incurring debt:

Question 19

  • to use the recent history of income and expenses.
  • to make guesses based on what someone thinks will look good.
  • to use already designed categories even if not needed.
  • to lump everything into as few categories as possible.
The best way to start to define budget categories and their budgeted amounts is:

Question 20

  • Character, capital, capacity, circumstances, and collateral.
  • Capital, capacity, conditions, collateral, and charm.
  • Character, capability, capital, conditions, and collateral.
  • Character, capital, capacity, conditions, and collateral.
The Five C’s of Credit are: