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Financial Literacy Quiz Prep Flashcards | StudBud

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What makes a credit card secured?

Why should you regularly check your bank statements?

Financial Literacy Quiz Prep

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Questions 10

Answers

1
Why should you regularly check your bank statements?
To earn more interest
To close your account
To apply for a loan
To spot errors and fraud
2
What makes a credit card secured?
It requires a cash deposit
It has a high credit score
It charges no interest
It has no spending limit
3
What does the “Pay Yourself First” budgeting strategy mean?
Pay your credit card early
Split money equally
Save before you spend
Spend first, then save
4
What is net pay?
Overtime pay
Take-home pay after deductions
Pay before taxes
Hourly wage
5
What is a key difference between a checking and savings account?
Checking accounts are for spending, savings for storing
Savings accounts charge more fees
Checking accounts earn more interest
Savings accounts don’t hold money
6
Which of the following is a type of savings account?
Money Market Account
Mortgage account
Billing account
Debit account
7
Which of the following is a common paycheck deduction?
Gas money
Social Security tax
Grocery expenses
Netflix subscription
8
What is the correct formula for simple interest?
Interest = Rate × Time + Balance
Interest = Time × Rate ÷ Principal
Interest = Principal + Rate × 12
Interest = Principal × Rate × Time
9
What must be included when writing a check?
Signature and phone number
Credit score and ID
Bank routing number and pin
Date, payee, amount in numbers and words, and signature
10
What cognitive bias causes people to continue investing in something even when it no longer makes sense?
Hedonic Adaptation
Overconfidence
Sunk Cost Fallacy
Herd Mentality