Financial Literacy Quiz

What does "Non-sufficient funds" mean?

• When a bank account has more money than needed

• When a bank account has exactly enough money to cover a payment

• When a bank account doesn't have enough money to cover a payment

• A type of savings account

What are overdraft fees?

• Fees for setting up a new bank account

• Fees charged for maintaining a bank account

• Fees for withdrawing money from an account

• Penalty fees if you spend more than what's in your account

What is a savings account best used for?

• To cover daily expenses

• To set aside funds for a "rainy day"

• To pay bills

• To keep track of loans

What does the principle "Pay Yourself First" suggest?

• Paying off debts before saving money

• Putting money into your savings account before paying bills

• Spending on leisure activities before saving

• Investing money before saving

What is the principal in financial terms?

• The interest earned on a loan

• The total amount of money saved

• The money originally lent to a borrower or put into an investment

• The fees charged for financial services

What does FDIC insure?

• Investments in stocks

• Deposits at banks up to $250,000

• Mutual fund investments

• Credit Union deposits

What is the maximum amount NCUA insures for deposits at Credit Unions?

• $100,000

• $200,000

• $250,000

• $500,000

What are mutual funds?

• Investments where you lend money to a company or government

• Accounts that insure deposits at banks

• Investments in a variety of assets, including money market accounts, bonds, and stocks

• Money allocated for profit over time

What do you invest in when you purchase stocks?

• Specific companies and get a share of their profits

• A variety of assets

• Money market accounts

• Government bonds

What are bonds?

• Investments in specific companies

• Investments where you lend money to a company or government and get paid back at a specific time with interest

• Insurance for bank deposits

• Mutual funds