Personal Finance Basics Quiz

The percentage of a person's knowledge and behavior regarding financial matters.

An obligation to repay borrowed money, including interest.

A continuous increase in the general price level of goods and services over time.

The ability to buy goods and services with a given amount of money.

A system where individuals and businesses exchange goods and services.

The process of calculating and tracking all your income and expenses.

A system of recording financial transactions with a focus on balancing income and expenses.

The difference between your assets (what you own) and your liabilities (what you owe).

A situation where the funds in your checking account are insufficient to cover a transaction, resulting in a fee from the bank and potentially impacting your credit score.

A legal process where a portion of your paycheck is withheld to pay off a debt owed to a creditor. This can happen due to unpaid taxes, child support, or other legal obligations.

A numerical representation of your creditworthiness based on factors like payment history, credit utilization, length of credit history, new credit, and types of credit.

A legal process that allows individuals to discharge or restructure their debts, impacting their credit report for a specified period.

A letter sent with your resume that highlights your qualifications for a particular job and expresses your interest in the position.

Investments that aim for steady growth over the long term, but with a higher potential for risk than conservative options.

Investments that are made within retirement accounts, often with tax advantages, such as deferring or eliminating taxes on gains.

The spreading of investments across different asset classes and sectors to reduce risk and maximize potential returns.