First Block Financial Literacy

Question 1

If Avery is earning 2% on his investments and inflation increases by 3%, what is happening to his purchasing power?

Accepted Answer

It's decreasing

Question 2

The cost or price colleges list on their websites or brochures is what you'll probably pay

Accepted Answer

False

Question 3

When filing taxes all income must be reported EXCEPT for...

Accepted Answer

Gifts received

Question 4

What document is sent to employees by their employer at the end of the year that lists all earnings for the year?

Accepted Answer

W-2

Question 5

Which of the following would be considered a high risk investment type?

Accepted Answer

Stocks

Question 6

What's a key difference between saving and investing?

Accepted Answer

Savings are for emergencies & goals, investing for long term wealth

Question 7

250 is the lowest credit score someone can have

Accepted Answer

False

Question 8

An account used to buy and sell stocks is called a...

Accepted Answer

Brokerage Account

Question 9

A tax credit reduces the tax an individual owes

Accepted Answer

True

Question 10

In investing, the relationship between risk and reward is:

Accepted Answer

Higher risk means higher reward

Question 11

What is a credit score?

Accepted Answer

A three-digit number that shows how likely you are to repay borrowed money

Question 12

A stock is partial ownership in a company

Accepted Answer

True

Question 13

Late payments can impact your credit score

Accepted Answer

True

Question 14

Your eligibility for financial aid and the amount you receive can be based on financial need and merit/achievement

Accepted Answer

True

Question 15

Student loans that the government covers the interest on, leaving the loanee to only pay the principal

Accepted Answer

Subsidized loans

Question 16

What is the difference between a Roth IRA and a traditional IRA?

Accepted Answer

Roth IRAs have you pay taxes upfront

Question 17

You have to have a credit card as an adult

Accepted Answer

False

Question 18

Which of the following does NOT determine your credit score

Accepted Answer

Where you live

Question 19

How much of your available credit should you use each month?

Accepted Answer

30% or less

Question 20

Which of these types of financial aid do you have to pay back?

Accepted Answer

Loans

Question 21

What is Social Security?

Accepted Answer

A retirement plan that is taken out of your paycheck

Questions 21