Financial Literacy Comprehension Quiz

Perhaps the most fundamental financial literacy skill is

• Investing

• budgeting

• earning

• saving

What is the key idea to remember about getting paid?

• the harder you work, the more you get paid

• employers care most about your effort

• you get paid for creating value for others

• education is the most important factor

Why should people save?

• for car maintenance and repairs

• for unexpected illness

• for future large purchase

• All of the above

The best way for someone without a lot of money to invest is to

• watch the news for hot stocks

• choose investments with minimal risks, like savings accounts

• buy bonds instead of stocks

• select an index or mutual fund

The stock market is food for what kinds of goals?

• long-term, like retirement

• intermediate-term, like a down payment on a house in 3 years

• short-term, like next month's rent

• all of the above

Albert Einstein is crdited with saying that the most powerful force in the universe is

• relativity

• compound interest

• human ingenuity

• nuclear power

What is one way everyone can increase his or her quality of life?

• getting an expensive education

• using credit to buy things now and not wait

• actively manage one's finances

• use all of one's money for needs and investment, not wants

Mr. Bahnsen says the difference between investing at age 50 vs age 25 for many middle class families can be

• hundreds of dollars

• thousands of dollars

• hundreds if thousands of dollars

• millions of dollars

What does Mr. Bahnsen say are the worst ramifications of excessive debt?

• the loss of hope to get ahead

• the loss of investment opportunities

• the inability to reture

• the inability to buy new things

Mr. Bahnsen encourages you ng people to completely avoid using credit.

• True

• False