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Financial literacy Test Flashcards | StudBud
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Financial literacy Test
Financial literacy Test
20 terms
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Flashcards
20 cards
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Questions
20
Answers
1
What is interest?
The return earned or cost paid when borrowing or investing money
The cost of groceries
A fee for using the internet
A fine for missing a payment
2
A financial goal could be something like saving up to buy a new video game next week.
False
True
3
Jerome borrowed money from the bank, and now he has to pay back exactly what he borrowed, with no extra charges.
False
True
4
A bank and a credit union both offer services like loans and savings accounts.
False
True
5
Which of the following is an example of an investment?
Buying candy
Buying a house to rent out
Opening a checking account
Donating to charity
6
Which of the following is a financial institution?
Bank of America
Netflix
Walmart
McDonald's
7
What does an interest rate represent?
The time it takes to repay a loan
The total number of deposits
The percentage charged or earned on money
The amount of cash in your wallet
8
Elena decided to invest in a small business because she hopes it will earn her money in the future.
False
True
9
Jasmine opened a Certificate of Deposit (CD) for $1,000 that she plans to keep for 2 years. After 6 months, she decides
True
False
10
Sophia wants to grow her money, so she hides it under her mattress instead of putting it in a bank or investing it.
True
False
11
Marcus wants to save money for college, so he opens a savings account at a credit union because it offers better interes
True
False
12
If you leave your money in a savings account, the bank might pay you interest for keeping it there.
True
False
13
A higher interest rate on a savings account means you will earn more money over time
False
True
14
What is a credit union?
A non-profit financial institution owned by members
A place to rent money
A company that sells credit cards
A type of credit score
15
How do banks make money?
By giving away free money
By lending money at higher interest rates than they pay
By selling groceries
By charging fees to depositors
16
What does it mean to invest?
To put money into something expecting a profit
To spend money on groceries
To save money in a piggy bank
To give away money for free
17
What is a Certificate of Deposit (CD)?
A document for buying a car
A loan agreement
A savings account with a fixed term and higher interest
A gift card for a bank
18
What happens if you withdraw money early from a CD?
Nothing happens
You pay a penalty
You earn more interest
You get a bonus
19
A financial goal could be something like saving up to buy a new video game next week.
False
True
20
What is a financial goal?
A deadline for paying bills
A money-related target you want to achieve
A rule for spending money
A type of savings account
