Ten wants to stop overspending on food delivery apps but isn’t sure where his money is going. What’s a smart first step?

C. Start tracking all his expenses

What does the 50-30-20 budgeting rule suggest?

B. 50% needs, 30% wants, 20% savings

Why might someone need a cosigner for a loan?

C. To increase their chances of approval

What does “paying with credit" mean?

B. Borrowing money to pay later

What is blockchain primarily used for?

B. Storing and verifying digital information securely

What is a primary purpose of a credit score?

B. To qualify for better financial opportunities

What is one benefit of using crypto as a payment method?

C. Fast, borderless transactions

What is a digital asset?

B. A cryptocurrency or similar token that exists online

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Financial Literacy

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Questions 17

Answers

1
Ten wants to stop overspending on food delivery apps but isn’t sure where his money is going. What’s a smart first step?
B. Delete all delivery apps
C. Start tracking all his expenses
A. Guess how much he spends weekly
D. Borrow money from a friend
2
What does the 50-30-20 budgeting rule suggest?
A. 50% savings, 30% needs, 20% wants
D. 50% debt, 30% taxes, 20% fun
C. 50% wants, 30% savings, 20% needs
B. 50% needs, 30% wants, 20% savings
3
Which factor most influences your credit score?
C. Payment history
D. Number of followers on social media
A. Marital status
B. How often you buy groceries
4
Which of the following is the best practice for managing credit cards?
D. Apply for multiple cards monthly
C. Pay full balance on time
A. Max out the credit limit
B. Pay only the minimum due
5
Why might someone need a cosigner for a loan?
A. To reduce taxes
D. To share payment equally
C. To increase their chances of approval
B. Because the loan is too small
6
Which of these is a risk of using cryptocurrency?
D. Limited online use
C. Volatile price changes
B. Inflation protection
A. Too many regulations
7
Which of these cards helps build credit but requires a deposit upfront?
B. Gift card
C. Secured credit card
A. Debit card
D. Prepaid card
8
What does “paying with credit" mean?
C. Getting free items
A. Paying with cash only
D. Paying more than the product's value
B. Borrowing money to pay later
9
What is blockchain primarily used for?
B. Storing and verifying digital information securely
D. Tracking online purchases
A. Generating social media posts
C. Backing up files
10
What is a primary purpose of a credit score?
B. To qualify for better financial opportunities
C. To determine tax payments
A. To track spending habits
D. To apply for a debit card
11
In investing, ROI means "Return On Investment"
True
False
12
Jacob’s car suddenly breaks down, and he doesn’t have enough saved to cover the repairs. What should he be doing?
A. Budgeting for entertainment
C. Buying a used car
D. Ignoring maintenance needs
B. Creating an emergency fund
13
What is one benefit of using crypto as a payment method?
A. Guaranteed returns
D. Automatic tax deductions
B. Instant bank loans
C. Fast, borderless transactions
14
What is a digital asset?
B. A cryptocurrency or similar token that exists online
C. A gold coin
D. A bank statement
A. A printed check
15
Which of these is a factor that can negatively impact your credit score?
D. Checking your own credit report
C. Missing loan payments
B. Keeping a low credit usage
A. Paying bills on time
16
What is an APR in relation to credit cards?
A. Annual Payment Requirement
D. Authorized Payment Ratio
C. Annual Percentage Rate
B. Average Payment Rate
17
What kind of insurance is typically required by law?
A. Life insurance
C. Pet insurance
D. Travel insurance
B. Car insurance

Financial Literacy Flashcards | StudBud