Financial Literacy and Economics Quiz

Question 1

Capital

Accepted Answer

The amount of money that an applicant has.

Question 2

An estimate of income and expenditure for a set period of time

Accepted Answer

budget

Question 3

The next best alternative when money time or resources are considered when making a choice

Accepted Answer

opportunity cost

Question 4

The coverage provided by motor vehicle insurance falls into (2) categories:

Accepted Answer

Protection for bodily injury and property damage

Question 5

Bill gates is broke and not an entreprenuer

Accepted Answer

False

Question 6

When a product Is in very high demand, the price increases

Accepted Answer

True

Question 7

Is the branch of the U.S treasury department in charge of collecting taxes today.

Accepted Answer

IRS

Question 8

A summary of an individuals credit history.

Accepted Answer

Credit History

Question 9

Installment loan

Accepted Answer

A loan where you borrow a sum of money and repay it in fixed payments

Question 10

You need enough ________ to protect yourself legally and financially

Accepted Answer

Coverage

Question 11

When a product is in very high demand, the price of it decreases

Accepted Answer

False

Question 12

Creditworthiness

Accepted Answer

Extent to which a person is considered suitable for financial credit.

Question 13

A Corportation gets its equity capital from its…

Accepted Answer

Stockholders

Question 14

FICO

Accepted Answer

Credit Bureau risk scores produced from models developed by fair isaac corp

Question 15

A hammer is an example of capital

Accepted Answer

True

Question 16

An asset that can back or act as security for the loan.

Accepted Answer

Collateral

Question 17

Is a measure of how prices change over time for a basket of goods and services

Accepted Answer

consumer price index

Question 18

Diminishing returns would usually be stage 1 in the levels of production

Accepted Answer

False

Question 19

When demand isn’t high, supply typically increases

Accepted Answer

True

Question 20

Division of Labor

Accepted Answer

dividing the work a number of smaller seperate tasks to be perfomed

Question 21

To not have enough productive resources to satisfy everyone’s unlimited wants and needs

Accepted Answer

Scarcity

Questions 21