Personal Finance

What this exam is like

The Personal Finance exam has 25 multiple-choice questions across these levels: General (25). Each attempt draws 10 at random from the level you choose. You get two tries per question, and each answer is explained afterwards. At the end you see your grade.

Sample questions

1. 1. What is inflation?

   • A rise in the minimum wage
   • A tax paid only by investors
   • The bank charging you more fees
   • The general rise in prices, so the same money buys less
   Show the answer

   ✅ The general rise in prices, so the same money buys less

   Inflation is the sustained rise in prices across the economy. Over time, the same banknote buys fewer things: that's why idle money loses purchasing power even if the number stays the same.

2. 2. As a general rule, when does it make sense to take out a loan?

   • Always, the sooner the better
   • Never, under any circumstance
   • Only if a stranger offers it to you on social media
   • When you have income that allows you to repay it and a clear reason (not just to spend freely)
   Show the answer

   ✅ When you have income that allows you to repay it and a clear reason (not just to spend freely)

   Going into debt isn't bad by definition, but it only makes sense if there's an income source backing the repayment and a clear goal. Without income, any loan turns into a snowball that only grows.

3. 3. Why are quick loans "no paperwork, 10 minutes" usually so expensive?

   • Because the State grants them
   • Because they are illegal
   • Because they lend without checking anything and offset that risk with very high interest
   • Because they must be repaid in gold
   Show the answer

   ✅ Because they lend without checking anything and offset that risk with very high interest

   The speed and the lack of requirements are not a gift: they are the price paid as APR, which in these products can exceed 1,000% a year. They also tend to roll over, and a small debt becomes a snowball that is very hard to stop.