Financial Literacy

Financial Literacy 101

Multiple Choice

Going to work at a job is a way to....

• get fired

• earn money

• make new friends

• buy a motorcycle

Multiple Choice

Money earned or received is...

• Expenses

• Income

• Deductions

• Check

Multiple Choice

A budget is....

• a way to spend your money

• a plan for spending your money

• creating ways to save your money

• all of the above

Multiple Choice

The percentage rate (APR) charged on purchases is called:

• annual fee
• interest
• balance

Multiple Choice

Before signing up for a credit card, you will want to find out...

• if there is an annual fee.
• what the interest rate is on purchases.
• what types of late fees could be charged.
• all of these are correct.

Multiple Choice

Using a credit card allows you to...

• put money into a savings account.
• purchase something now and pay for it later.
• take money directly from your checking account.

Multiple Choice

Financial Literacy is having the knowledge, understanding, and skills necessary to become an effective consumer.

• True
• False

Multiple Choice

What is emergency savings?

• Transferring money into your savings before you pay your bills

• Original amount of money saved or invested

• Cash set aside to cover the cost of unexpected events

• Maximizing your return by selling stocks at a higher price than what you paid for

Multiple Choice

What is saving?

• Accumulation of excess funds by intentionally spending less than you make

• Cash set aside to cover the cost of unexpected events

• A monetary asset that contributes to your net worth

• Money available today that is worth more if received in the future

Multiple Choice

Benefits of credit cards include:

• safe and convenient, bonuses are offered
• allows you to build a positive credit report
• needed for reservations and online shopping
• all of these

Multiple Choice

To put money into an account.

• Deposit
• Withdraw
• Savings for a chicken
• Interest for a cow

Multiple Choice

A plastic payment card linked to a financial account and is used for transactions.

• Debit Card
• Credit Card
• Checking Account
• Savings Account

Multiple Choice

Which services is a bank likely to offer?

• net deposit and balance
• online banking and savings accounts
• check writing and car wash
• credit card and Tootsie Rolls

Multiple Choice

Which one of the following are financial institutions?

• bank and credit union
• library and hospital
• school and museum
• Starbucks and Wal-Mart

Multiple Choice

Will spends $8.00 on what he needs to make hot dogs.  If he sells 20 hot dogs for $1.00 each, how much is his profit?

• $20.00
• $12.00
• $10.00
• $11.00

Multiple Choice

Sawyer is selling bracelets.  She pays $2.00 for the beads and $2.50 for the string.  She sells 10 bracelets for $1.00 each.  How much are her expenses?

• $2.00
• $2.50
• $4.50
• $5.50

Multiple Choice

Money that you make is called...

• income
• variable expense
• propery taxes
• fixed expense

Multiple Choice

Something that you pay is called....

• income
• an expense
• a profit
• savings

Multiple Choice

Which of the following is an advantage of using a credit card?

• Interest is charged for the use of a credit card.

• Consumers can purchase things now, and pay for them later in the event of an emergency.

• You could be a victim of identity theft.

Multiple Choice

Which of the following is considered an advantage to using a debit card to make purchases?

• Debit cards are convenient and easy to carry around.
• Purchases can be made quickly and easily.
• You can use many ATMs to get cash.
• All of the above.