Financial Literacy assessment

Which of the following is NOT a type of budget?

• Balanced budge

• Deficit budget

• Surplus budget

• Inflation budget

What is the purpose of a credit score?

• To determine a person's eligibility for a loan

• To track a person's income and expenses

• To calculate the amount of taxes owed

• To measure a person's financial literacy

Which of the following is an example of an asset?

• Mortgage

• Credit card debit

• savings account

• student loan

What is the best definition of interest?

• The amount of money you owe on a loan

• The amount of money you earn on an investment

• The price you pay for borrowing money

• The percentage of income you save each month

What is the purpose of insurance?

• To protect against financial loss in case of an accident or unexpected event

• To provide additional income during retirement

• To invest money for future financial goals

• To pay off student loans

6. Which of the following is NOT a type of investment?

• Stocks

• Bonds

• Real estate

• Credit cards

What is the definition of a loan?

• A financial institution that helps manage money

• Money borrowed that must be repaid with interest

• Monthly payments made towards a mortgage

• The process of saving money for future expenses

What is the difference between a debit card and a credit card?

• Debit cards are only accepted online, while credit cards are accepted in stores

• Debit cards deduct money directly from a checking account, while credit cards allow borrowing money up to a certain limit

• Debit cards have higher interest rates than credit cards

• Credit cards have no fees, while debit cards charge transaction fees

What is the purpose of a savings account?

• To keep money safe and easily accessible

• To invest in the stock market

• To pay off debts

• To track monthly expenses

What is the definition of a budget?

• A plan for spending and saving money

• The total amount of money earned in a year

• The percentage of income saved each month

• The process of investing money in stocks