Personal Finance trivia

Personal Finance Mini Quiz

Test your knowledge with these top questions!

Question 1

What does an insurance "deductible" represent for a policyholder?

A deductible is the preset amount the insured person must pay before the insurance company begins covering the remaining costs.

Question 2

In personal investing, what term describes a sudden, severe market-wide price drop?

A market crash is a rapid, double-digit percentage drop across major stock indices, often triggered by panic selling or economic shocks.

Question 3

What is the primary purpose of a credit freeze with major bureaus?

A credit freeze restricts access to your credit report, preventing fraudsters from opening new unauthorized loans or credit cards.

Question 4

Which US Treasury security adjusts its principal value with inflation?

Treasury Inflation-Protected Securities (TIPS) adjust their principal value based on the Consumer Price Index to protect purchasing power.

Question 5

Which ratio compares credit used to credit available?

Utilization below 30% signals responsible credit use.

Question 6

Which ratio helps judge a stock's price vs earnings?

P/E divides share price by earnings per share.

Question 7

Which budget item should come before discretionary spending?

An emergency fund covers unexpected expenses without debt.

Question 8

What does employer matching do for retirement contributions?

Matching adds employer dollars up to a percentage of pay.

Question 9

Which habit most improves a credit score over time?

Payment history is the largest factor in FICO scoring models.

Question 10

Which US employer plan allows pre-tax retirement saving?

A 401(k) defers income tax until withdrawal in retirement.