What is a credit score?

the number that represents your financial health

Which action will NOT help you build a good credit score?

Applying for as many credit cards as you can

a plan for managing income and expenses

What is the purpose of Social Security?

To provide benefits for those who have retired or are disabled

A retirement savings plan offered by employers

What is the primary purpose of a checking account?

To pay your bills and daily expenses

What is a credit limit?

The max amount you can spend on your card

What is the best reason to start investing early?

To take advantage of compound interest

What is a debit card?

A card linked to your checking account

What is diversification in investing?

Investing in different types of assets to reduce risk

What does the FDIC stand for?

Federal Deposit Insurance Corporation

Best way to avoid impulse buying?

create a shopping list and stick with it

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financial literacy education

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Questions 20

Answers

1
What type of bank account can earn the most interest?
savings
checking
2
Which is an example of a variable expense?
Rent
Car insurance
Netflix
Electricity bill
3
Which financial institution is not insured by the FDIC?
Credit Unions
Crypto
Banks
Online Banks
4
What is a credit score?
taxes that have to paid this year
total amount of debt you have incured
the number that represents your financial health
the amount of money you have
5
Which action will NOT help you build a good credit score?
Keeping your credit card balance low
Checking your credit report for errors
Applying for as many credit cards as you can
Paying your bills on time
6
Which of the following is an investment?
Cash in a jar
Checking account
Credit card payment
Stock market assets
7
What is a budget?
a type of bank account
a plan for managing income and expenses
a list of all the things you want to buy
8
Which of the following is a FIXED expense?
groceries
new shoes
McDonald's
rent
9
What is the purpose of Social Security?
To pay for construction of public facilities
To provide benefits for those who have retired or are disabled
To reduce the amount of income tax you pay
10
What is a 401(k)?
Savings account for sudden emergencies
A retirement savings plan offered by employers
A form of life insurance
A government tax form
11
What is the primary purpose of a checking account?
To keep money you cannot touch
To grow your savings
To pay your bills and daily expenses
To earn interest over time
12
What is a credit limit?
The max amount you can spend on your card
The number of cards you own
The amount of cash you can withdraw
The interest rate you have on a loan
13
What is the best reason to start investing early?
To impress your friends
To spend money faster
To take advantage of compound interest
14
Which of the following is deducted from your paycheck?
Sales tax
Federal income tax
Investment tax
Property tax
15
What is a debit card?
A card that allows you to borrow money
A card used for building credit
A card linked to your checking account
16
What is an interest rate on a loan?
The amount of money you borrowed
The fee you pay to keep a bank account
The cost of borrowing money
Your loan principal
17
What is diversification in investing?
Only buying expensive stocks
Putting all of your money in one stock
Investing in different types of assets to reduce risk
Only investing in real estate
18
What does the FDIC stand for?
Federal Department of Investment Control
Federal Deposit Insurance Corporation
Fiscal Development and Insurance Council
Financial Debt Insurance Committee
19
What is the purpose of an emergency fund?
to pay for vacations
to cover unexpected expenses
to buy expensive gifts
20
Best way to avoid impulse buying?
only shop when you are bored
use your credit card for everything
buy whenever anything is on sale
create a shopping list and stick with it

financial literacy education Flashcards | StudBud