Personal Finance Final Review

Front

What is the primary purpose of creating a personal budget?

Back

To plan for future financial goals

Front

Which of the following is considered a low-risk investment? Stocks, Bonds, Real estate, Cryptocurrency

Back

Bonds

Front

What is a credit score primarily used for?

Back

To assess loan eligibility

Front

What is the benefit of starting to save for retirement early?

Back

More time for compound interest to grow

Front

Explain how a high credit score can impact loan interest rates.

Back

It decreases the interest rates.

Front

Develop a plan to improve a credit score from 600 to 750.

Back

Pay bills on time, reduce credit card balances, and avoid new hard inquiries

Front

Compare the benefits of a Roth IRA versus a traditional IRA for retirement savings.

Back

Roth IRA offers tax-free withdrawals; traditional IRA offers tax-deductible contributions.

Front

Which of the following is an example of the Attainable element of a SMART goal?
Saving for a new pair of shoes,
Saving $5,000 for a used car,
Saving $250 per month to meet your savings goal,
Reducing credit card debt by $1,000.

Back

Saving $250 per month to meet your savings goal

Front

Which of the following is an example of the Measurable part of a SMART goal? Planning to reach your goal in 6 months, Planning to save $5,000 total, Saving money for an emergency fund , Reducing spending on wants

Back

Planning to save $5,000 total

Front

Which of the following is an example of non-monetary compensation? Health insurance, Paid time off, Retirement benefits, All of the above

Back

All of the above