Financial Literacy Quiz

What is a budget?

• A type of investment

• A type of insurance

• A type of loan

• A summary of income and expenses

What is the difference between hourly wage and salary?

• Hourly wage is for part-time workers, salary is for full-time workers

• Hourly wage is paid monthly, salary is paid hourly

• Hourly wage is fixed, salary is variable

• Hourly wage is based on hours worked, salary is not based on hours

What is take home pay?

• Gross income before taxes

• Extra income from overtime

• Net amount after taxes and deductions

• Income from investments

What are variable expenses?

• Expenses that change from month to month

• Expenses that remain constant every month

• Expenses that are essential for living

• Expenses that are not necessary

What are financial needs?

• Expenses that help you live more comfortably

• Expenses that are essential for living and working

• Expenses that are not necessary

• Expenses that change from month to month

What is an advantage of credit?

• Reduces the risk of debt

• Helps you save money for the future

• Allows you to purchase things without paying for them

• Builds your credit history

What is a credit card?

• A card that takes money directly from your checking account

• A card that is used for online banking

• A card that allows you to buy goods and services on credit

• A card that gives you immediate cash withdrawal

What is a credit score used for?

• To predict the likelihood of repaying a debt on time

• To determine the amount of money in a bank account

• To calculate the interest rate on a loan

• To track the expenses of an individual

What is the 50-30-20 budget rule?

• 50% on needs, 30% on wants, 20% saved

• 50% on needs, 30% saved, 20% on wants

• 50% on wants, 30% on needs, 20% saved

• 50% saved, 30% on needs, 20% on wants

What is a fixed expense?

• Expenses that change from month to month

• Expenses that remain constant every month

• Expenses that are essential for living

• Expenses that are not necessary