Money Basics

Quiz

Question 1

What is a good way to get rid of a bad habit related to money?

A. Don’t use a budget

B. Replace it with a good habit

C. Use credit cards

D. Get a job

Question 2

What steps can you take to be a wise consumer?

A. Try to reduce spending

B. Avoid impulse shopping

C. Search for the best buy

D. All of the above

Question 3

What is credit?

A. A loan you do not have to pay back

B. A reward for a job well done

C. A contractual agreement that allows you to get a loan

D. A report on your spending habits

Question 4

A bank _______.

A. receives deposits and honors checks

Question 5

In general, how much debt (not including rent or mortgage) should you have?

A. No more than 20 percent of your take home income

B. No more than 60 percent of your take-home income

C. No more than 50 percent of your take-home income

D. No more than 40 percent of your take-home income

Question 6

A bank _______.

B. makes investments

C. pays interest on deposits

D. does all of the above

Question 7

A regular checking account _______.

A. allows you to write checks

B. allows you to get cash

C. allows you to earn interest

D. allows you to do both A and B

Question 8

A certificate of deposit (CD) is _______.

A. a type of savings account

B. a type of checking account

C. a gift certificate

D. an agency that insures your money

Question 9

Social Security provides support when you _______.

A. retire

B. become disabled

C. die; it provides benefits to your family

D. all of the above

Question 10

A 401(k) is _______.

A. a school or nonprofit agency retirement plan

B. a company retirement savings plan

C. a loan

D. all of the above

Question 11

Comparative shopping means _______.

A. buying everything on sale

B. always using coupons

C. checking prices at several institutions

D. never buying generic products

Question 12

Your car budget may include _______.

A. car loan, payment guidelines and extras

B. gas, insurance, and maintenance

C. none of the above

D. all of the above

Question 13

When you lease a car, you typically _______.

A. are NOT limited in the number of miles you can put on the vehicle

B. are limited in the number of miles you can put on the vehicle

C. have a higher down payment and higher monthly car payments

D. are limited in the area in which you can drive the vehicle

Question 14

When you rent a place to live, you typically _______.

A. don’t have to deal with a landlord

B. have to sign a rental or lease agreement

C. don’t have to worry about cleaning up when you leave

D. have to sign a mortgage agreement

Question 15

A monthly mortgage payment consists of _______.

A. principal, interest, taxes, and insurance

B. taxes, insurance, maintenance, and a down payment

C. principal, insurance, and taxes

D. principal, a down payment, and taxes

Answers:

1) B. Replace it with a good habit
2) D. All of the above
3) C. A contractual agreement that allows you to get a loan
5) A. No more than 20 percent of your take home income
6) D. does all of the above
7) D. allows you to do both A and B
8) A. a type of savings account
9) D. all of the above
10) B. a company retirement savings plan
11) C. checking prices at several institutions
12) B. gas, insurance, and maintenance
13) B. are limited in the number of miles you can put on the vehicle
14) B. have to sign a rental or lease agreement
15) A. principal, interest, taxes, and insurance