Personal Finance Basics Quiz

A numerical rating that assesses an individual's creditworthiness based on their credit history, payment history, amount of debt, length of credit history, and types of credit used.

The process of legally filing for relief from debt obligations, eliminating or restructuring outstanding debts.

A legal document that outlines how a person's assets will be distributed after their death.

A financial tool that protects against unexpected events, such as illness, accidents, or property damage.

A systematic plan for managing income and expenses, often involving tracking spending, setting financial goals, and allocating funds for savings and debt repayment.

The persistent rise in the cost of goods and services over time.

The interest earned on previously earned interest.

Having less money saved than you spent during a given period.

The process of comparing your checking account register to your bank statement to ensure accuracy.

The difference between what you own and what you owe.

The amount you are responsible for if you are a victim of identity theft.

A person who takes a risk to start and operate their own business.