Financial Literacy Test

What is Financial Literacy?

• knowing and understanding how finances work

• being able to read numbers

• getting good grades in algebra

• getting good grades in math

What is a sales tax?

• tax paid on income

• tax paid on all expenses

• tax paid on purchases

• tax earned on savings

What is interest?

• money that can be earned on an account, such as savings

• money paid on purchases

• money paid for expenses

• money paid on taxes

One way that leads a person to earn additional income is for the person to

• discuss financial goals with her supervisor.

• increase budgeted monthly expenses.

• increase her knowledge or improve skills

• volunteer at a successful corporation

Income can be earned or unearned. Which of the following is an example of unearned income?

• Money from a part-time second job.

• Tips from customers.

• Interest from bank accounts.

• Paid vacation days from work.

The terms “job” and “career” are often used interchangeably. However, there is a major difference in the meaning of the terms. A career is characterized as

• responsibilities without risk because it involves different tasks.

• responsibilities that result in earning income from an hourly wage.

• a profession or vocation requiring special education or training.

• work that includes the benefit of short hours or little responsibility.

. A person is age 16 and looking for part-time work at a restaurant that is part of a national chain. Which of the following is the employer allowed to ask for on a job application?

• Copy of a major credit card.

• Social Security number.

• Parents’ occupations.

• List of medical problems.

16. An important responsibility for young adults living independently is to

• purchase cell phone product insurance.

• pay the principal if they have a mortgage.

• purchase vacation homes.

• monitor credit card expenses and debt.

Which of the following can cause a person to become a victim of consumer fraud?

• Having accounts at more than one bank.

• Responding to an email from an unknown sender.

• Filing income taxes online.

• Registering for the “Do Not Call” list.

For the past two years, the price of gasoline increased 10%, while incomes did not increase. Which of the following will impact the monthly budget and financial plans of most people as a result of this price increase?

• Insurance premiums.

• Property taxes.

• Use of an automobile.

• Automobile repairs.