01
Fill in the blank
1 point
In a cash-flow record, money received is an , while money spent is an .
Free Practice Quiz Question List
01 Personal Finance Foundations Online Quiz Questions
Use this free practice quiz with 20 questions to review 01 Personal Finance Foundations, test your knowledge, and prepare for your next test or exam.
20 questions
02
Written response
1 point
What financial term means assets minus liabilities? Enter the term.
03
Choose one
1 point
Which goal is most actionable because it gives a specific purpose, amount, and target date?
- A
Save more when possible.
- B
Save $600 for a needed repair by December.
- C
Spend less on things that are not important.
- D
Build savings sometime in the future.
04
True or false
1 point
Financial well-being includes more than income or wealth; it also involves managing everyday finances, handling unexpected costs, and making progress toward goals.
- A
True
- B
False
05
Fill in the blank
1 point
A financial snapshot summarizes what someone owns and owes at a , while a cash-flow record tracks money received and spent over a .
06
Written response
1 point
A person has $4,000 in savings, a car worth $8,000, and debts of $7,500. Using net worth=assets−liabilities, what is the person's net worth in dollars?
07
Choose all
1 point
Which habits can help someone follow and reassess a financial plan? Select all that apply.
- A
Record income and spending.
- B
Assume a previous plan will remain suitable even if income changes.
- C
Check upcoming bill due dates.
- D
Review account balances.
- E
Avoid revisiting goals once they have been set.
08
Choose one
1 point
Jordan's monthly income exceeds planned expenses, but several bills are due before the first paycheck. What is the best first step to address this timing problem?
- A
Ignore the due dates because the monthly total is manageable.
- B
Reduce the monthly income figure so it matches the bill schedule.
- C
List paydays and bill due dates, then plan how to cover bills that come first.
- D
Treat a monthly surplus as proof that no shortfall can occur.
09
Choose all
1 point
Which factors may affect a person's financial choices? Select all that apply.
- A
Convenience
- B
Habits
- C
Unexpected events
- D
Pressure from other people
- E
The assumption that all goals can be fully funded at once
10
True or false
1 point
A person with positive net worth necessarily has enough money immediately available to pay bills due this week.
- A
True
- B
False
11
Open ended
1 point
Jordan receives $3,000 in monthly take-home income and plans $2,650 for bills, everyday spending, and saving. Some bills are due before the first paycheck. Explain why Jordan could still run short early in the month, and give two actions that could help address the problem.
12
Choose one
1 point
A household finds that its current plan does not balance. What is the most useful next step before deciding what to change?
- A
Assume the problem is a lack of willpower and stop tracking expenses.
- B
Review the records to identify whether the gap involves an expense, timing, or variable income.
- C
Keep the same plan without checking whether circumstances have changed.
- D
Focus only on net worth and disregard incoming and outgoing money.
13
Choose one
1 point
Two people have limited money to allocate among stability, education, and family needs. Which approach best reflects sound goal-setting?
- A
Everyone should rank the same financial goal first.
- B
People may reasonably rank financial goals differently according to their circumstances and values.
- C
Only long-term goals should influence money decisions.
- D
Financial priorities should be fixed once and never reconsidered.
14
True or false
1 point
True or false: Someone who prefers manual tracking should still choose automatic transfers, because automatic systems are always better than a written plan or manual review.
- A
True
- B
False
15
Choose one
1 point
Which goal is the most actionable because it states a specific, measurable target and a deadline?
- A
Save more whenever possible.
- B
Save $600 for a needed repair by December.
- C
Spend less on things that are not important.
- D
Put money aside for something in the future.
16
Written response
1 point
A financial snapshot includes the resale value of a person's vehicle. Which category should include that value?
17
Choose one
1 point
Someone wants to answer, “What do I own and owe as of today?” Which financial record best fits that purpose?
- A
A cash-flow record, because it tracks money received and spent over time.
- B
A financial snapshot, because it summarizes what someone owns and owes at a particular point in time.
- C
A cash-flow calendar, because it shows when bills are due.
- D
A goal plan, because it ranks future priorities.
18
Choose one
1 point
A person's spending plan no longer balances after an unexpected cost. What is the most useful next step before changing the plan?
- A
Assume the problem is a lack of willpower and abandon the plan.
- B
Immediately stop saving toward every goal.
- C
Review the record to identify the source of the gap before deciding what to change.
- D
Ignore the gap until the next scheduled review.
19
Written response
1 point
A monthly plan lists $1,850 in take-home income and $1,420 in planned outflows. What is the difference in dollars?
20
Choose one
1 point
A person's monthly income exceeds planned expenses, but several bills are due before the next payday. Which action best addresses this timing problem?
- A
List paydays and due dates in a cash-flow calendar to see when money is available.
- B
Assume the monthly difference means every bill can be paid on time.
- C
Stop tracking dates and focus only on total monthly spending.
- D
Treat the timing issue as proof that monthly income is lower than reported.