Financial Knowledge Quiz

If you have to pay your car insurance deductible, which is the best place to get the money?

• your emergency fund

• your insurance company

• your credit card

• your family

If you used money from your emergency fund, which is an appropriate next response?

• Repay your emergency fund by borrowing against credit cards.

• Continue with the saving plan as is, and your emergency fund will eventually return to its previous balance.

• Reduce casual spending and increase savings until your emergency fund has been paid back.

• Borrow the money from your friends to pay the emergency fund back.

Which is the first step in setting a financial goal?

• setting aside leftover income

• reducing your spending

• tracking your spending

• starting a second source of income

Which of the following is identified as a 501(c)(3)?

• a company that donates its profits but has unrelated business income

• a lobbying firm

• a private school

• a private foundation

Prior to the CARES Act, up to what percentage of your income could be deducted as a donation to charity?

• 100%

• 80%

• 70%

• 60%

If you want to start an emergency savings fund and want to make sure your money is available at any given time, which is the best option for you?

• a bank savings account

• a mutual fund

• a CD

• a money market mutual fund

Which of the following is not a characteristic of a typical bank savings account?

• no restrictions on money withdrawals or deposits

• an average of 0.05% interest with no other restrictions

• savings are easily accessible for the customer

• a high interest rate

Which of the following are considered to be capital gains?

• the profit earned on the sale of an asset which has increased while it was owned

• the new value of a stock after the market closes

• the interest earned from a government bond

• the money lost when a stock is sold for less than it was purchased for

Which of these is a mutual fund?

• a fund that you share with your family to save in the bank

• a fund used to pay shared bills and expenses

• a fund that pools money from many investors to buy securities

• a fund used by the government to gather taxed money

Which is a source of passive income?

• teaching about personal finance

• owning dividend stocks

• owning luxury cars

• working as a consultant