Financial Literacy Quiz

1. Anna would like to purchase a new bike that costs $600. She only has $300 in her checking account, but she wants to buy it today. Which of the following statements are true?

• She can use her debit card to pay for the bike and pay it off over time.

• She can wait a few months until she saves up the rest of the money she needs.

• She can use her debit card to pay for the bike with money from her checking account.

• She can use her credit card to buy the bike now and pay it off over time.

Answer explanation

If she wants it NOW and doesn't have the money in her checking account or in cash, a credit card is the only way she can get it TODAY and pay for it over time.

2. Kane is comparing two different banks. First Texas Bank charges a $7 monthly fee. Republic of Texas Bank charges 1% of your account balance. Which is true?

• First Texas Bank will always be the best value.

• Republic of Texas Bank will always be the best value.

• If Kane keeps more than $700 in his account, First Texas Bank is the best value.

• If Kane keeps less than $700 in his account, First Texas Bank is the best value.

Answer explanation

Once you go over $700 dollars, 1% of that amount would be more than $7.

A trade school offers different courses for mechanics that go to the school. Their yearly salaries are shown in the picture. Over a 20 year career, how much more will the aircraft mechanic make compared to the automotive mechanic?

• $654,000

• $436,000

• $21,800

• $545,000

Answer explanation

Subtract the aircraft mechanic's salary and the automotive mechanic's salary to get $21,800, then multiply that by 20 years.

Which of the following questions does NOT describe the use of a credit card?

• It can earn the card holder some rewards.

• It could build a positive credit history.

• It allows for unlimited purchases.

• Purchases may be subject to interest charges.

Answer explanation

Credit cards have a credit limit. The limit might be high, but you can't just spend as much as you want.

Read the picture to answer the question.

• Bank of Texas

• Main Street Bank

• The are equally good choices.

Answer explanation

1% of $2,200 is $22.00, so Bank of Texas is cheaper at only $10.00

This tool helps you keep track of all the deposits, withdrawals, and transfers that happen on your checking account.

• credit card

• check register

• credit report

• checking account

Which card allows you to spend your money from your personal checking account?

• Credit Card

• Social Security Card

• Debit Card

• Library Card

When you are old enough to have a job and earn money, which of the following do you plan on having to pay for most of your purchases?

• I will mostly use a debit card for purchases.

• I will use a debit card for some purchases, and a credit card for other purchases.

• I will try to use cash for most purchases.

• I will mostly use payment options like Apple Pay, Venmo, Cash App, etc.