Financial Literacy Quiz

What is the main purpose of a financial institution?

• To provide entertainment

• To sell groceries

• To manage money

• To offer internet services

Which of the following is an advantage of saving money in a bank savings account?

• High risk of losing money

• Limited access to your funds

• Earning interest on your savings

• Paying high fees

What is a fixed expense?

• An expense that changes every month

• An expense that stays the same every month

• An expense that only occurs once a year

• An expense for non-essential items

What is a variable expense?

• An expense that stays the same every month

• An expense that changes every month

• An expense for only essential items

• An expense that is paid yearly

• $200

• $800

• $100

• $700

Which of the following is NOT a financial institution?

• Bank

• Credit Union

• Insurance Company

• Restaurant

Why is it important to understand the difference between fixed and variable expenses?

• To make budgeting easier

• To increase your expenses

• To avoid saving money

• To spend more on entertainment

What does financial literacy help an individual achieve?

• Confusion about money

• Better decision-making regarding finances

• Less interest in managing money

• A higher likelihood of accruing debt

Which of the following is a disadvantage of keeping your savings under your mattress instead of in a financial institution?

• Earning interest

• Increased security

• Risk of theft or loss

• Easy access to online banking

How can understanding financial institutions benefit you?

• It can lead to financial losses

• It can help you choose where to best save or invest your money

• It decreases your financial options

• It makes it harder to access your money