Finance Quiz: Part 6

Total Questions : 25

Scoring System:
Correct Answer    : +1 points
Incorrect Answer  : -1 point
Not Answered      :  0 point


The final result will appear at the end. All The Best.
  

1. What is a sinking fund?
A savings account used to save for a specific future expense.
A savings account used to pay off debt.
A budget category used to track regular expenses.
2. What is the envelope budgeting method?
A budgeting method where you only spend money on essentials.
A budgeting method where you use a spreadsheet to track your expenses.
A budgeting method where you put cash in envelopes for specific expenses.
3. What is a budget variance?
The amount of money left over after you pay all your bills.
The difference between your budgeted and actual expenses.
The total amount of money you spend each month.
4. What is a budget planner?
A tool used to help you create and manage your budget.
A person who manages your finances for you.
A financial advisor who helps you plan your budget.
5. What is a fixed expense?
An expense that varies from month to month.
An expense that is only paid once a year.
An expense that stays the same from month to month.
6. What is a variable expense?
An expense that stays the same from month to month.
An expense that varies from month to month.
An expense that is only paid once a year.
7. What is the difference between a want and a need?
A want is something you must have to survive, and a need is something you would like to have.
A need is something you must have to survive, and a want is something you would like to have.
A need is something you want, and a want is something you need.
8. What is the debt snowball method?
A method of paying off debt where you focus on paying off your highest interest debt first.
A method of paying off debt where you make only the minimum payments on all your debts.
A method of paying off debt where you focus on paying off your smallest debt first.
9. What is the 30-day rule?
A rule that requires you to pay off your credit card balance in 30 days.
A rule that requires you to wait 30 days before making a purchase.
A rule that requires you to save 30% of your income each month.
10. What is a financial goal?
A goal to save a certain amount of money.
A goal to spend more money on non-essentials.
A goal to spend all your money each month.
11. What is income?
Money received from investments.
Money earned from working.
Both
12. What is earned income?
Income from working for someone else or owning a business.
Income from investments.
Income from government benefits.
13. What is unearned income?
Income from investments.
Income from working for someone else or owning a business.
Income from government benefits.
14. What is gross income?
Income after taxes and other deductions.
Income before taxes and other deductions.
Income from investments.
15. What is net income?
Income before taxes and other deductions.
Income after taxes and other deductions.
Income from investments.
16. What is a salary?
Income earned from working a set number of hours per week or month.
Income earned based on the amount of work completed.
Income earned from investments.
17. What is a wage?
Income earned based on the amount of work completed.
Income earned from working a set number of hours per week or month.
Income earned from investments.
18. What is commission income?
Income earned from working a set number of hours per week or month.
Income earned from investments.
Income earned based on the amount of work completed.
19. What is a bonus?
Extra income received for meeting or exceeding performance goals.
Income earned based on the amount of work completed.
Income earned from investments.
20. What is passive income?
Income earned from working for someone else or owning a business.
Income earned from government benefits.
Income earned from investments.
21. What is capital gains income?
Income earned from government benefits.
Income earned from selling assets at a profit.
Income earned from working for someone else or owning a business.
22. What is rental income?
Income earned from working for someone else or owning a business.
Income earned from renting out property.
Income earned from government benefits.
23. What is dividend income?
Income earned from working for someone else or owning a business.
Income earned from government benefits.
Income earned from investments in stocks or mutual funds.
24. What is capital losses?
The loss incurred when working for someone else or owning a business.
The loss incurred when receiving government benefits.
The loss incurred when selling assets at a lower price than they were purchased for.
25. What is interest income?
Income earned from working for someone else or owning a business.
Income earned from investments in bonds or savings accounts.
Income earned from government benefits.