Financial Literacy Quiz 1

What is the Annual Percentage Rate (APR)?

• The cost of borrowing money with high risk

• The cost of borrowing money with no interest

• The cost of borrowing money on an annual basis

• The cost of borrowing money on a monthly basis

What is a Debit Card?

• A bank card that automatically deducts the amount of a purchase from the checking account

• A credit card with no spending limit

• A credit card that requires no payment

• A bank card that adds money to the checking account

What is the difference between a need and a want?

• Needs are necessary for survival, wants are unnecessary for survival

• Needs are necessarily to basic survival, wants are expansions on needs that aren't necessary

• Needs are expansions on wants, wants are necessary for survival

• Needs are items that improve standard of living, wants are necessary for survival

What is a Credit Report?

• A report on a person's employment history

• A report on a person's creditworthiness that includes identifying information

• A report on a person's income and expenses

• A report on a person's savings and investments

What is a Short term goal?

• Goals you want to achieve in 10 years

• Goals you want to achieve in 5 years

• Goals you want to achieve in less than a year

• Goals you want to achieve in more than a year

What is a Long term goal?

• Goals you want to achieve in less than a year

• Goals you want to achieve in more than 5 years

• Goals you want to achieve in 10 years

• Goals you want to achieve in 2 years

What is a Savings Account?

• An account that allows you to borrow money

• An account that allows you to save money and earn interest

• An account that allows you to invest in stocks

• An account that allows you to pay bills

What is a Budget?

• A plan for spending and saving money

• A report on a person's creditworthiness

• A list of all the money a person has

• A list of all the money a person owes

What is a Mortgage?

• A loan to purchase a home or other real estate

• A type of savings account

• A type of credit card

• A type of investment

What is a Credit Score?

• A measure of a person's ability to manage debt

• A measure of a person's income

• A measure of a person's savings

• A measure of a person's investment portfolio