Financial Literacy Test

Compound interest in savings accounts earns more money for the owner than

• Direct interest

• Simple Interest

• Both of these

• None of these

Investing

• Is a guaranteed way to grow your money

• Is riskier than putting money in a savings account

• Is never a good option for growing your money

• Two of these

FDIC

• Protects funds in the stock market

• Stands for the Federal Deposit Insurance Corporation

• Stands for Federal Demonstrative Instant Command

• Two of these

A Cash Advance

• Is an expensive way to borrow money

• Is a long-term cash loan

• Is a tax break

• None of these

Compensation is

• The amount of taxes you have to pay for your job

• An amount of money that is awarded to a person to pay for loss, injury or suffering.

• Both of these

• None of these

Credit History is

• A record of a person's borrowing and repayment activity

• A record of where someone has lived during his lifetime

• A payment record that allows you to borrow money

• None of these

Cryptocurrency is

• All types of money

• Can be used like money to make purchases or hold onto like an investment

• A digital asset or valuable item

• Two of these

Direct Deposit

• When you put money in your checking account

• The electronic transfer of money directly into your bank account

• Commonly done with paychecks

• Two of these

A Dividend

• A type of insurance

• A payment made to people who own stock in a company

• A payment that stockholders must pay to a company

• None of these

Down payments are usually made when purchasing

• Automobiles

• Houses

• Food

• Two of these