Financial Literacy Quiz

Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have?

• Exactly $102

• More than $102

• Less than $102

• Don’t know

Imagine that the interest rate on your savings account is 1 percent a year, and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?

• More

• Same

• Less

• I don't know

True or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund

• True

• False

What do we call a fee or a charge that is collected for using someone's money?

• Deposit

• Interest

• Loan

• Cheque

Which of the following scenarios demonstrates a good budgeting practice?

• Tom's monthly income is less than his monthly expenses.

• Jerry’s monthly taxes are equal to her monthly expenses.

• Mickey spends less money each month than he earns at his job.

• Batman spends more money each month than he earns at his job.

After creating his budget, John realized his expenses exceed his income. To resolve this issue he can do which of the following?

• Go on a shopping spree

• Invest more in the stock market

• Work fewer hours

• Eat out less frequently

What is something you already own (positive cash value)?

• asset

• liability

CREDIT CARD BILL

• asset

• liability

If Jack's assets are $99,000,000 and his liabilities are $33,000,000... How much is his net worth?

• $66,000,000

• $122,000,000

• -$66,000,000

• Answer Not Here

Investing requires taking financial risks

• True

• False