Financial Literacy

Question 1

Inflation decreases the purchasing power of money over time.

Accepted Answer

True

Question 2

What does it mean to "pay yourself first"?

Accepted Answer

Prioritizing savings before spending on other expenses

Question 3

A debit card allows you to borrow money from the bank to make purchases

Accepted Answer

False

Question 4

A high annual percentage rate (APR) on a loan means you pay more in interest over time.

Accepted Answer

True

Question 5

Financial literacy is only important for people working in finance.

Accepted Answer

False

Question 6

What is the recommended percentage of your income to save for retirement?

Accepted Answer

10-15%

Question 7

What is the key to building an emergency fund?

Accepted Answer

Setting aside a portion of your income regularly

Question 8

Carrying a balance on your credit card does not improve your credit score. Paying off balances on time does.

Accepted Answer

False

Question 9

Which expense is typically considered a "need" rather than a "want"?

Accepted Answer

Monthly rent or mortgage payments

Question 10

What does a credit score represent?

Accepted Answer

Your financial habits and creditworthiness

Question 11

Why is it important to have a budget?

Accepted Answer

To track income and control expenses

Questions 11