NumicornNumicornLearn, solve, progress

Personal Finance Practice Tests

These Grade 11 Additional Subjects practice tests examine budgeting, needs and wants, cash flow, income and taxes, banking, credit, compound interest, saving, investing, retirement, insurance, debt, privacy, and financial literacy.

Skills covered

  • Building budgets, separating fixed and variable expenses, setting savings goals, and managing cash flow
  • Understanding checking and savings accounts, APY, credit scores, utilization, APR, secured credit, and statements
  • Distinguishing gross and net pay, withholding, deductions, credits, simple interest, inflation, and real return
  • Comparing stocks, bonds, mutual funds, ETFs, diversification, risk tolerance, liquidity, employer matches, and vesting
  • Managing insurance, identity theft, phishing, predatory lending, emergency funds, debt risk, and financial literacy

How to use these practice tests

Identify the financial decision first. Then compare the cost, benefit, timing, risk, and trade-off, and use the relevant formula when the question includes interest, return, or percentage changes.

For more Grade 11 Additional Subjects practice, return to the Grade 11 Additional Subjects category.

Select a test

5 Tests
1. Test2. Test3. Test4. Test5. Test

5. Test

Grade 11 Personal Finance Practice Tests

Practice Grade 11 Additional Subjects questions about budgeting, income, taxes, banking, credit, saving, investing, insurance, debt, privacy, and financial literacy.

Choose the best answer. Identify the financial product, calculation, risk, or planning principle and evaluate its cost, benefit, timing, and trade-off.

10 Questions
0/10 Questions0 %
Correct 0
Incorrect 0
Unanswered 10
1. QuestionMultiple choice

What is dollar-cost averaging?

Please select an answer first.

Correct answer: A

The correct answer is Investing a set amount at regular intervals regardless of short-term market movements.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: Regular contributions can reduce the pressure to predict the best entry point, but they do not eliminate investment risk.
  3. Check the result and trade-off: The correct answer is Investing a set amount at regular intervals regardless of short-term market movements.

Regular contributions can reduce the pressure to predict the best entry point, but they do not eliminate investment risk.

2. QuestionMultiple choice

What is an index fund?

Please select an answer first.

Correct answer: B

The correct answer is A fund designed to track the performance of a selected market index.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: Index funds typically follow a rules-based portfolio and may have lower costs than some actively managed funds.
  3. Check the result and trade-off: The correct answer is A fund designed to track the performance of a selected market index.

Index funds typically follow a rules-based portfolio and may have lower costs than some actively managed funds.

3. QuestionMultiple choice

Why do investment fees matter?

Please select an answer first.

Correct answer: C

The correct answer is Fees reduce the amount of money that remains invested and can compound over time.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: Even small recurring fees can meaningfully reduce long-term growth because the money paid in fees cannot compound for the investor.
  3. Check the result and trade-off: The correct answer is Fees reduce the amount of money that remains invested and can compound over time.

Even small recurring fees can meaningfully reduce long-term growth because the money paid in fees cannot compound for the investor.

4. QuestionMultiple choice

What is identity theft?

Please select an answer first.

Correct answer: D

The correct answer is Using another person's personal information without permission for fraud or other unauthorized activity.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: Identity theft can involve accounts, purchases, tax filings, or other activity made using stolen personal information.
  3. Check the result and trade-off: The correct answer is Using another person's personal information without permission for fraud or other unauthorized activity.

Identity theft can involve accounts, purchases, tax filings, or other activity made using stolen personal information.

5. QuestionMultiple choice

What is a deductible in an insurance policy?

Please select an answer first.

Correct answer: A

The correct answer is The amount the policyholder generally pays before the insurer pays covered benefits.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: A higher deductible may be associated with a lower premium, but it increases the policyholder's cost when a covered claim occurs.
  3. Check the result and trade-off: The correct answer is The amount the policyholder generally pays before the insurer pays covered benefits.

A higher deductible may be associated with a lower premium, but it increases the policyholder's cost when a covered claim occurs.

6. QuestionMultiple choice

What is an insurance premium?

Please select an answer first.

Correct answer: B

The correct answer is The amount paid to maintain insurance coverage.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: Premiums may be paid monthly, quarterly, or annually depending on the policy and insurer.
  3. Check the result and trade-off: The correct answer is The amount paid to maintain insurance coverage.

Premiums may be paid monthly, quarterly, or annually depending on the policy and insurer.

7. QuestionMultiple choice

What is phishing in personal finance?

Please select an answer first.

Correct answer: C

The correct answer is A deceptive message or website intended to steal passwords, account details, or payment information.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: Phishing often creates urgency or imitates a trusted institution to persuade a person to reveal sensitive information.
  3. Check the result and trade-off: The correct answer is A deceptive message or website intended to steal passwords, account details, or payment information.

Phishing often creates urgency or imitates a trusted institution to persuade a person to reveal sensitive information.

8. QuestionMultiple choice

What is predatory lending?

Please select an answer first.

Correct answer: D

The correct answer is Lending that uses abusive, deceptive, or excessively costly terms against borrowers.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: Predatory products may hide fees, encourage unaffordable borrowing, or exploit a borrower's lack of information.
  3. Check the result and trade-off: The correct answer is Lending that uses abusive, deceptive, or excessively costly terms against borrowers.

Predatory products may hide fees, encourage unaffordable borrowing, or exploit a borrower's lack of information.

9. QuestionMultiple choice

Why can an emergency fund reduce debt risk?

Please select an answer first.

Correct answer: A

The correct answer is It can cover unexpected costs without requiring a high-cost credit product.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: Accessible savings can prevent a temporary expense from becoming long-term revolving debt.
  3. Check the result and trade-off: The correct answer is It can cover unexpected costs without requiring a high-cost credit product.

Accessible savings can prevent a temporary expense from becoming long-term revolving debt.

10. QuestionMultiple choice

What is financial literacy?

Please select an answer first.

Correct answer: B

The correct answer is The knowledge and skills needed to make informed decisions about money.

  1. Identify the financial decision: Determine whether the prompt concerns budgeting, income, credit, investing, insurance, or consumer protection.
  2. Apply the finance principle: Financial literacy supports budgeting, saving, borrowing, investing, risk management, and evaluation of financial information.
  3. Check the result and trade-off: The correct answer is The knowledge and skills needed to make informed decisions about money.

Financial literacy supports budgeting, saving, borrowing, investing, risk management, and evaluation of financial information.

Previous testNext test