Which of the following statements about saving is true?

Saving money consistently each month can help you prepare for the future

Being on a budget means:

You made a plan of your expenses to be less than or equal to your income

When deciding between which of the two items to purchase, one should always:

Choose an item after the comparison of costs and benefits of both items

What is not a method to improve your credit score?

Always pay in cash and do not get any credit cards

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Financial Literacy Quiz

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Questions 10

Answers

1
Which of the following statements about saving is true?
Saving money consistently each month can help you prepare for the future
You can categorize expenses under-saving if you got a discount on them
None of the above
You only need to save for your long-term goals
2
Being on a budget means:
You pay bills every month at the due date
You made a plan of your expenses to be less than or equal to your income
Your bills are generally paid by every due date
You are earning enough money to be able to live well
3
How often can you get a free credit report?
Once every 6 months
You can’t get a free credit report
Once every 2 years
Once a year
4
An example of a need is:
Room and board
A car
A laptop
A vacation
5
When deciding between which of the two items to purchase, one should always:
Choose the item that costs less.
Choose the item with the greatest benefits.
There is nothing in particular.
Choose an item after the comparison of costs and benefits of both items
6
What is not a method to improve your credit score?
Maintain your older credit cards
Pay all your bills on time
Keep your credit card balances under 30% of your credit limit
Always pay in cash and do not get any credit cards
7
Select each of the reasons for becoming financially literate:
Helps you reach your goals and reduces stress
Reduces your risk of losing money
All of the above
Saves you money and helps you make smart decisions
8
What is considered an excellent credit score?
700 to 850
1000 to 1500
561 to 600
500 to 560
9
Which is a method to fund your college education?
All of the above
Seek out college scholarships
Apply for financial aid using the FAFSA and TAP applications
Seek out more affordable college options
10
Your credit score is important because:
All of the above
It can determine whether you can get credit cards
It can affect your interest rate if you finance a car or home
It can have an impact on whether you can finance major purchases

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