4th Grade Financial Literacy Quiz

Ms. Cash wants to borrow $13,750 to buy a car. Which type of institution is most likely to lend her the money?

• Bank

• Insurance Company

• University

• Hospital

Bri has a smoothie stand. Her weekly expenses are listed below:

Fresh Fruit: $8 to $16

Ice: $6

Cups: $3

Which expense is a VARIABLE expense?

• Ice

• Fresh Fruit

• Cups

Many people deposit some or all of their money at banks because...

• they want to be friends with the owners

• they have more money than they need

• they want to keep their money in a safe place

• they have to follow the laws of their state

To calculate profit what is the correct procedure?

• subtract the expenses and multiply them by the sell price

• add the expenses then add them to the sell price

• multiply the expenses and sell price

• add the expenses then subtract them from the sell price

Justin paid $150 for an electric scooter and $300 for a motorcycle. If he sells both to his friend for $700 how much profit will he earn?

• $250

• $200

• $1,000

• $450

Which is an example of a FIXED expense?

• clothes

• a car payment

• groceries

• movie tickets

A money market account would be a good savings account option for someone with $200.

• true

• false

Ricardo bought 12 crystals. He sold all of the crystals to his friends for $24. What other information would be helpful to determine the profit that Ricardo earned?

• the color of the crystals

• where he bought them

• how much he originally paid for them

• how many friends he sold them to

A benefit to saving money in a basic savings account is

• the money is insured and therefore safe

• you might make a small amount of interest

• you can withdraw the money at anytime

• all of these answers are correct

To borrow money from a bank that must be paid back with interest is called a

• account

• loan

• budget

• inflation