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Test Your Knowledge of Personal Finance

I’ve learned a lot about finance over the past two years and have shared most of those lessons here with you in my Finance  101 series.  I figured that since the kids got to enjoy Spring Break last week, we should enjoy this week with them back at school.  But if you remember Spring Break like I did, it was always preceded by exams!  You know what this means, right?  Quiz time!

Test Your Knowledge of Personal Finance

Let’s see how many of these questions you can get correct.  No cheating!! Some of the answers can be found around this website but you might have to look.  Leave your score in the comments below.  The winner gets bragging rights.

1.  Which of these is a legitimate way of raising your credit score?
A.  Add some purchases to your credit card
B.  Close a credit card
C.  Ask your credit card company to reduce your interest rate
D.  Pay down your outstanding credit card balance

2.  What is the most common meaning for the acronym IRA?
A.  Individual Retirement Annuity
B.  Individual Retirement Account
C.  Individual Retirement Arrangement
D.  Internal Revenue Allotment

3.  Which one of these will your homeowner’s insurance cover?
A. Vandalism
B.  Flood
C.  Mold
D.  Pets

4.  The dog ate my money.  In which event won’t the bank or government replace my money?
A.  I can see the entire serial number
B.  I have at least three corners of the bill
C.  I have at least  half of the bill
D.  I have the President’s face that appears on the bill and nothing else

5.  You’re single, own no property, have no kids, and have no assets to speak of but loads of debt. Are you legally required to have a will?
A.  Yes
B.  No

6.  Two tires on your car exploded and you need to use your car this week (it’s happened to me).  You have no emergency fund or credit card to pay for the new tires so you decide to get a payday loan.  What do you need to obtain this loan?
A.  Asset to back the loan (like a car or house)
B.  Pay stub as proof or income
C.  Credit report to see if you’re a good risk
D. Cosigner to guarantee the loan

7.  Combined, these two peer-to-peer lending companies are the largest in the country:
A.  Lending Club and Prosper
B.  Lending Club and Zopa
C.  Kiva and Prosper
D.  Zopa and Kiva

8.  Who is allowed to issue bonds?
A.  The U.S. Treasury
B.  Municipal governments
C.  Companies
D.  All of the above

9.  Changes were recently made as to what you can use your flexible spending account (FSA) on.  Which of the following was once covered, but is now generally disqualified from FSA reimbursements?
A.  Copays for doctor visits
B.  Contact lenses and vision services
C. Over-the-counter medications
D.  Cosmetic surgery

10.  The which of the following will never be forgiven in the case of a bankruptcy filing:
A.  Student loans
B.  Mortgages
C.  Credit cards and car loans
D.  Hospital debt

Answers:  1) D; 2) B; 3) A; 4) D; 5) B; 6) B; 7) A; 8) D; 9) C; 10) A

So how did you do?!

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