Personal Finance Test

Which of the following is not a determinant of credit worthiness?

• Character

• Capacity

• Capital

• Regressive tax

Before investing/saving, people should satisfy their

• Wants

• Needs

• Trade offs

• Opportunity costs

The potential for loss is

• Opportunity cost

• Liability

• Risk

• Moral hazard

On average, who is likely to make more money during their working career?

• A college graduate

• A high school dropout

• A high school graduate

• A tech school dropout

What is the penalty if you withdraw money from any of your retirement accounts early?

• You lose eligibility for that program

• The money you withdraw will be taxed at your regular tax rate

• You will lose interest on it

• You will have to repay it

A guarantee of repayment required by lenders is called

• Credit

• Deductible

• Down payment

• Collateral

A reward or punishment designed to alter behavior is called a/an

• Opportunity cost

• Trade off

• Incentive

• Inducement

The amount you have to pay on a claim before the insurance company will begin payments is called

• Liability

• Collateral

• Deductible

• Discount

A line of credit that lasts for a specified time period is called

• Open-end credit

• Closed-end credit

• Cyclical credit

• Lifetime credit

The monthly payment you make when you buy insurance is called

• Deductible

• Opportunity cost

• Premium

• None of the above