Financial Literacy Quiz

What is the term for income received after taxes and other deductions have been taken out?

• Gross income

• Net income

• Passive income

• Discretionary income

Which term refers to the costs that do not change in total despite changes in the volume of goods or services produced?

• Variable cost

• Fixed cost

• Dividend

• Deductible

What is the legal document that expresses a person's wishes as to how their property is to be distributed after their death?

• Mortgage

• Will (legal)

• Escrow

• Equity

What term describes the money left over after all necessary expenses, including taxes, have been paid?

• Disposable income

• Gross income

• Net income

• Discretionary income

What is the term for the income generated from sources other than employment or active business activities?

• Salary

• Wage

• Passive income

• Gross income

What is a fixed cost in financial planning?

• A cost that varies depending on usage

• A one-time expense

• A recurring expense that does not change in amount

• Money left after taxes

What does disposable income refer to?

• Money spent on education and career

• Money saved for retirement

• Money left after taxes

• Money used for variable expenses

Which of the following is an example of a variable cost?

• Rent

• Insurance

• Food

• Mortgage

What is a reason to create a spending plan or budget?

• To increase disposable income

• To avoid bankruptcy

• To change fixed costs to variable costs

• To reduce the cost of living

Which of the following is a type of spending plan mentioned in the document?

• Zero-Based-Budget

• Fixed-Expense-Budget

• Variable-Expense-Budget

• Income-Adjustment-Budget