Financial Literacy and Economics Quiz

what is opportunity Cost

Define the word scarcity.

• The economic theory of scarcity refers to a mismatch between an abundance of resources and consumer goods.

• Goods can be produced in great abundance with minimal human labor needed.

• People have unlimited wants, but there is a limited number of goods and services

• Abundance

What is Financial Literacy?

• Knowing how to manage money

• Savings and avoid financial issues

• Credit card debt

• Building credit

What is budgeting ?

• Choices you make.

• In short, a budget is a A plan to manage money effectively.

• The cost of living

• A plan to spend and use your credit card and not go into debt.

What is interest ?

• Money that you gain from your checking account every time you use it.

• Money you gain from cash spent or from your debit o card.

• Money you pay back .

• Money you gain when you have money in the bank, that the bank gives you in exchange for trusting them with your money

Which account grows interest ?

• Saving account

• Checking account

How do you raise credit ?

• Low credit utilization:

• Pay credit card bills on time

• Use credit whenever it is wanted.

• Build a long credit history:

checking account lets you put away money to earn more.

True or false

• True

• False

Interest is added to your credit card bill if you don't pay it off in full.

True or false

• False

• True

Google Wallet and Apple Pay let you pay for things with your phone.

True or false ?

• True

• False