Personal Finance Basics Quiz
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Questions and Answers

What is the consequence of overdrawing a checking account?

  • Potential overdraft fees (correct)
  • Money deposited instantly
  • Increased credit score
  • Mandatory account closure
  • Which of the following is a component of a credit score?

  • Employment duration
  • Payment history (correct)
  • Income level
  • Social security number
  • How long does bankruptcy typically remain on a credit report?

  • 2 years
  • 7 years (correct)
  • 10 years
  • 5 years
  • When is it generally advised to visit a financial office?

    <p>For basic budgeting and financial planning</p> Signup and view all the answers

    What is a common misconception about changing investments based on market conditions?

    <p>It should be done frequently</p> Signup and view all the answers

    What is defined as the persistent rise in the cost of goods and services?

    <p>Inflation</p> Signup and view all the answers

    What does calculating your net worth involve?

    <p>Own minus owe</p> Signup and view all the answers

    What is the first step in reconciling a checking account?

    <p>Matching your register to the bank statement</p> Signup and view all the answers

    What does a zero-based budget aim to accomplish?

    <p>Ensure expenses equal income</p> Signup and view all the answers

    Which financial concept suggests that a certain amount of money today is worth more than the same amount in the future?

    <p>Present value</p> Signup and view all the answers

    How often should you fill out a FAFSA?

    <p>Every year</p> Signup and view all the answers

    What does a sinking fund help with?

    <p>Funding large purchases</p> Signup and view all the answers

    What is the benefit of online bill pay?

    <p>Eliminates checks and late fees</p> Signup and view all the answers

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