Financial Literacy 100-Questions

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

• True
• False

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.

All of these are examples of types of credit except:

• savings account
• college loan
• credit cards
• car loan

These are also all types of credit except:

• car loan
• college loan
• checking account
• home mortgage loan

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.

A credit card company usually has a grace period for purchases. A grace period is...

• the time period after you make a purchase until the time the interest starts to get charged.
• the time period where interest builds on the amount you purchased.

When you sign up for a credit card you will get a lengthy document explaining things, it is the

• lease
• title
• after math document
• terms of agreement

Overspending and accumulating too much debt can ruin your credit score

• True
• False

Annual fee definition

• When you withdraw money from the ATM and it charges you $1.50.
• When a credit card company charges you a fee each YEAR

Credit scores range from _____ to _____.

• 350, 800
• 300, 850
• 400, 650
• 400,800