Fin Quiz – Quiz Buddy

Finance Basics

💰 Think you're money smart?
Take the quiz and find out if you can budget, save, and spend like a pro! 🧠💸

Please Enter Below Details:

1 / 15

1. What is the best strategy for managing debt?

A. Only paying minimum payments

B. Taking more loans to pay existing ones

C. Ignoring debt repayments

D. Paying off high-interest debt first

2 / 15

2. What is the main purpose of an emergency fund?

A. To cover unexpected expenses

B. To pay monthly bills

C. To invest in stocks in dips

D. To earn passive income

3 / 15

3. Which type of insurance is important for protecting your dependents?

A. Dependent insurance

B. Term insurance

C. Health insurance

D. Travel insurance

4 / 15

4. How does inflation affect the value of money over time?

A. Increases value of money over time

B. Decreases purchasing power of money

C. Has no effect on savings

D. Reduces the need for investments

5 / 15

5. What is the primary difference between stocks and bonds?

A. Stocks represent ownership, while bonds represent debt

B. Stocks are low risk, bonds are high risk

C. Both are the same

D. Bonds provide higher returns than stocks

6 / 15

6. What is an example of a fixed expense in a personal budget?

A. Shopping

B. Entertainment

C. Groceries

D. House Rent

7 / 15

7. Why is it important to start investing early?

A. Helps in quick profits

B. As future is scary

C. Eliminates investment risks

D. To benefit from compounding growth

8 / 15

8. What is compound interest?

A. Fixed interest applied yearly

B. A type of bank fee

C. Interest on only the initial deposit

D. Interest calculated on both principal and previously earned interest

9 / 15

9. What is the safest type of investment?

A. Government bonds

B. Mutual funds

C. Cryptocurrencies

D. Stocks

10 / 15

10. Why is diversification important in investing?

A. Eliminates all financial risks

B. Reduces risk by spreading investments

C. Maximizes short-term profits

D. Increases investment returns

11 / 15

11. What is the key benefit of having health insurance?

A. Covers medical expenses

B. Helps in wealth accumulation

C. Helps minimize taxable income

D. Guarantees lifetime protection against accidents

12 / 15

12. What is the definition of an asset in finance?

A. Anything of value owned by a person or company

B. A car purchased on EMI

C. A financial obligation owed to someone else

D. Money borrowed from a bank

13 / 15

13. What is the best way to improve your credit score?

A. Paying bills on time

B. Closing all credit card accounts

C. Avoiding credit cards completely

D. Paying minimum due amount consistently

14 / 15

14. What does ROI (Return on Investment) measure?

A. The time duration of an investment

B. The profit/loss from an investment

C. The risk of an investment

D. Increased returns from an investment

15 / 15

15. What is a good rule of thumb for an emergency fund?

A. A fixed amount of $500

B. 3-6 months of living expenses

C. No need for an emergency fund

D. 1 month of living expenses

Your score is

Exit

Kindly Provide Your Valuable Feedback:

Anonymous feedback

Thank you for your valuable feedback.

Report a question

Please Enter Below Details: