Financial Literacy Quiz

What is the best reason for a high school student with a part-time job to start saving?

• To develop a habit of saving

• To buy expensive items

• To impress friends with their savings

• To donate to charity

What is the purpose of a mutual fund?

• To pay off credit card debt

• To diversify investments

• To save for short-term goals

• To invest in a single company

What is the most common index fund representing 500 major publicly traded U.S. companies?

• Dow Jones Industrial Average

• Russell 2000

• NASDAQ Composite

• S&P 500

What is the best way for someone to invest in the stock market with a small amount of money?

• Buying real estate

• Opening a savings account

• Investing in a single company

• Purchasing an index fund

What is the most important factor to consider when investing in the stock market?

• Diversification

• High-risk investments

• Short-term gains

• Investing in a single stock

What is the main advantage of starting to save at a young age?

• Paying off debt faster

• Having more spending money

• Avoiding taxes

• Taking advantage of compound interest

What is the difference between buying something with credit that is an asset versus consuming something with credit?

• Buying an asset retains value, while consuming does not

• There is no difference

• Both options lead to financial security

• Consuming with credit is better than buying an asset

What is a negative outcome of excessive credit card debt?

• Increased wealth and joy

• Emotional drain and anxiety

• Minimal financial stress

• Building hope and security

What is the best way to avoid financial troubles and pitfalls?

• Ignoring financial planning

• Spending more than earning

• Maximizing credit card debt

• Limiting expenses and liabilities

What is the key difference between buying something with credit that is an asset versus consuming something with credit?

• Buying an asset retains value, while consuming does not

• There is no difference

• Both options lead to financial security

• Consuming with credit is better than buying an asset