Financial Literacy Quiz

Question 1

To prevent identity theft, you should do all of the following except _______________.

Accepted Answer

disreguard credit card and bank statements.

Question 2

Savings accounts are considered ______________ risk.

Accepted Answer

low

Question 3

Who uses financial institutions?

Accepted Answer

All of the above

Question 4

A credit card __________________________.

Accepted Answer

Allows you to buy goods and services now and pay later.

Question 5

A debit card _________________________.

Accepted Answer

automatically transfers money from a bank savings or checking.

Question 6

Fixed expenses are _______________________.

Accepted Answer

expenses that don't change from month to month i.e. auto insurance or rent.

Question 7

______________ the next best alternative given up when making a financial choice.

Accepted Answer

Opportunity cost

Question 8

Money Market accounts are considered ______________ risk.

Accepted Answer

low

Question 9

A tax on items sold & usually passed to the customer is a/an ______________ tax.

Accepted Answer

sales

Question 10

All of the following are included in credit report except _________________

Accepted Answer

online banking passwords.

Question 11

An advantage to having a credit card is ____________________.

Accepted Answer

the cash, travel, and gift rewards.

Question 12

Online banking can do all of the following EXCEPT _______________________.

Accepted Answer

Send lenders a credit report.

Question 13

Mutual funds are considered _______________ risk.

Accepted Answer

low/medium/high

Question 14

A debit card is essentially a paper check but doesn’t require the processing time a check does.

Accepted Answer

True

Question 15

Stocks are considered __________________risk.

Accepted Answer

Medium/High

Question 16

To prevent identity theft, you should take only the cards & ID you need when you're out.

Accepted Answer

True

Question 17

The government uses your tax dollars in the following ways except_______________________.

Accepted Answer

parties & vacations.

Question 18

A _________________ is a for profit institution that offers personal loans, mortgages, and other services.

Accepted Answer

bank

Question 19

The ________________ is defined as the monthly earnings after all the deductions have been taken.

Accepted Answer

Net Monthly Income

Question 20

A tax based on the value of homes, cars, factories is a _____________________.

Accepted Answer

property tax

Question 21

Expenses that vary from month to month, such as entertainment, car repairs, or doctor bills are variable expenses.

Accepted Answer

True

Question 22

Using a debit card, the cardholder does not need to have the money in the bank to pay for the purchase.

Accepted Answer

False

Question 23

All are true about a credit card except ___________________.

Accepted Answer

it is free money.

Question 24

A/An ________________ is a record of income and spending and a plan for managing money.

Accepted Answer

budget

Question 25

A want is defined as __________________________.

Accepted Answer

goods or services that make people contentbut aren't necessary for survival

Question 26

A _______________________keeps records on a consumer’s credit experience.

Accepted Answer

credit agency

Question 27

A/An _____________________ helps people complete transactions with their money safely, quickly, and conveniently.

Accepted Answer

financial institution

Question 28

A ______________ is a non-profit cooperative that offers banking services and is owned by members.

Accepted Answer

credit union

Question 29

A need is defined as __________________________.

Accepted Answer

goods or services that people cannot survive without.

Question 30

Bonds are considered to be a high risk investment.

Accepted Answer

False

Question 31

A fee received or paid for the use of money is ______________.

Accepted Answer

interest.

Question 32

A/An ____________ is a tax on wages, salaries, rents, dividends from stocks.

Accepted Answer

income tax

Question 33

Impulse buying is defined as __________________________.

Accepted Answer

making a purchase based on an immediate want or pressure of advertising.

Question 34

_______________ is defined as having limited resources and prevents people from having everything they want.

Accepted Answer

Scarcity

Question 35

A credit score is a number from lenders indicating a person’s creditworthiness based on the credit report.

Accepted Answer

True

Financial Literacy Quiz

Questions 35

Financial Literacy Quiz

Questions 35