Basic Personal Finance
Why is having an emergency fund important for financial stability?
a) To fund vacations
b) To cover unexpected expenses
c) To invest in the stock market
d) To pay off debts faster
b) To cover unexpected expenses
Many athletes actively engage in philanthropy. What financial consideration is essential for athletes when planning charitable contributions?
a) Tax Deductions
b) Public Relations
c) Networking Opportunities
d) Social Media Exposure
a) Tax Deductions
What does Net Worth represent in financial terms?
a) Total Assets - Total Liabilities
b) Total Income - Total Expenses
c) Total Revenue - Total Costs
d) Total Savings - Total Debt
a) Total Assets - Total Liabilities
Which emotional factor can lead individuals to make impulsive and irrational financial decisions?
a) Financial literacy
b) Emotional intelligence
c) Fear
d) Analytical reasoning
c) Fear
Which of the following is an effective credit-building strategy?
a) Frequently closing credit card accounts
b) Carrying large outstanding balances on credit cards
c) Paying bills on time and in full each month
d) Applying for multiple credit cards simultaneously
c) Paying bills on time and in full each month
What is the highest possible credit score according to the FICO scoring system?
a) 600
b) 750
c) 850
d) 900
c) 850
Which NBA player is known for his successful investments in technology companies and is often considered one of the savviest business minds in professional sports?
a) Julie Ertz
b) Kevin Durant
c) Shaquille O'Neal
d) Magic Johnson
c) Shaquille O'Neal
Which of the following is an example of a liquid asset?
a) Real Estate
b) Retirement Account
c) Cash
d) Car
c) Cash
Based on a 2023 MSN study, do the majority of Americans consider themselves "spenders" or "savers"?
a) Spenders
b) Savers
c) 50/50 Split
a) Spenders (56%)
What is the primary advantage of maximizing your employer match in your 401(k) plan over the long term?
a) It guarantees high returns on investment
b) It minimizes taxes on contributions
c) It boosts overall retirement savings through additional employer contributions
d) It reduces the need for personal savings
c) It boosts overall retirement savings through additional employer contributions
Why is diversification considered a risk management strategy in investing?
a) It guarantees high returns on all investments.
b) It reduces the overall risk by spreading investments across different asset classes.
c) It eliminates the need for research and analysis.
d) It allows for investing in only high-risk, high-reward assets.
b) It reduces the overall risk by spreading investments across different asset classes.
Which of the following companies does NBA player LeBron James NOT have an investment in?
a) Blaze Pizza
b) Fenway Sports Group (Boston Red Sox)
c) UNINTERRUPTED Media
d) Peloton
d) Peloton
NO COACH QUESTION: What is the primary purpose of creating a personal net worth statement?
a) To track monthly income and expenses
b) To calculate annual taxes
c) To assess an individual's current financial situation, progress, and wealth
d) To monitor credit score fluctuations
c) To assess an individual's current financial situation, progress, and wealth
On average, do consumers tend to spend more when using a credit card or cash?
a) Credit card
b) Cash
c) It does not matter
a) Credit card (12-18% more)
If a borrower consistently pays more than the minimum monthly payment on their student loans, what financial benefit(s) can they potentially enjoy?
a) Higher credit score
b) Early loan payoff and reduced interest costs
c) Increased interest rate
d) Loan forgiveness eligibility
b) Early loan payoff and reduced interest costs
What criteria listed below has the greatest impact on one's credit score?
a) Credit utilization
b) Payment history
c) Length of credit history
d) Credit mix
b) Payment history (35%)
True or False: A professional athlete is 8x more likely to face bankruptcy in retirement than the average person.
a) True
b) False
b) False (4x more likely)
As a college student, which of the following would be categorized as a liability on your Net Worth Statement?
a) Student Loans
b) Scholarship Awards
c) Part-time Job Income
d) Textbooks and Study Materials
a) Student Loans
Over the past 30 years, the main stock market index has produced an annual return of 10%, meanwhile, the average investor only made a return of 4% per year. What are the two emotional factors that significantly contributed to this phenomenon?
a) Apathy and satisfaction
b) Fear and sadness
c) Fear and greed
d) Greed and theft
c) Fear and greed
NO COACH QUESTION: Why might a homeowner consider refinancing their mortgage?
a) To increase the interest rate
b) To extend the loan term
c) To decrease the interest rate
d) To pay more in interest over time
c) To decrease the interest rate
NO COACH QUESTION: What does the term "bull market" refer to in the context of the stock market?
a) A market with declining stock prices
b) A market characterized by optimism and rising stock prices
c) A market with stable stock prices
d) A market focused on commodities rather than stocks
b) A market characterized by optimism and rising stock prices
In the NFL, what is the term commonly used to describe the minimum amount a team must spend on player salaries to comply with league regulations?
a) Salary Floor
b) Wage Threshold
c) Cap Basement
d) Compensation Bottom
a) Salary Floor
In 2022, Jonah bought a new Toyota Tacoma for $50,000 but paid only $35,000 after trading in his old vehicle. As of 2024, the current value of the Toyota Tacoma is $40,000.
What dollar amount should Jonah put on his current Net Worth Statement to represent his Toyota Tacoma?
a) $50,000
b) $40,000
c) $35,000
d) $45,000
b) $40,000
Research shows that the majority of financial habits are set by the age of ____.
a) 18
b) 13
c) 9
d) 25
c) 9
According to a 2022 Gallup survey, the average age of retirement in the United States is ____.
a) 58
b) 71
c) 67
d) 61
d) 61