Financial Literacy Exam Review

Which of the following is an example of a durable good? 

• A bottle of mouthwash
• A roll of paper towels
• A case of bottled water
• A car

Which of the following correctly describes market forces based on the information below? When ___________________________ goes up, ____________________ goes down.

• Demand, Supply
• Supply, Sun
• Price, Inflation
• Demand, Price

Saving up for retirement is an example of: 

• A short term goal
• A budget
• A long term goal
• A personal financial plan

Using the ALOE formula and the information below, what is Christopher's net worth (owner's equity)? Christopher has $5000 in savings and an $8000 car. He also has a loan for $5600 and owes $900 on his credit card.

• $6500
• $7700
• $13000
• $1700

A series of equal annual deposits into a bank account is called a(n) ______________________. 

• Annuity
• Equality
• Insolvency
• Direct Deposit

Money left over on an income statement or budget is known as a ________________________, while a shortage of money is known as a ________________________. 

• Surplus, Deficit
• Take home pay, insolvency
• Profit, Loss
• Asset, Liability

If you make a mistake while writing a check, what should you do? 

• Void the check
• Issue a stop-payment order
• Report it to your bank
• Use white-out

Which of the following is NOT one of the 5C's of credit? 

• Character
• Cash on hand
• Credit history
• Capital

How many times a year can you obtain a free credit report?

• Once, from the credit bureau of your choice
• Three, once from each credit bureau
• Unlimited, from the credit bureau of your choice
• Zero, unless you have been denied a loan

Which of the following is NOT a disadvantage of credit?

• The temptation to buy more than you can afford
• The potential damage to your credit score
• The option to buy now, pay later
• The cost to borrow