Financial Literacy Quiz

What does ATM stand for?

• Automated Teller Machine

• Automatic Transaction Medium

• Automated Transaction Module

• Automatic Teller Medium

What is a budget?

• A plan for spending and saving money

• A type of financial investment

• A document listing debts

• A record of past transactions

What is the purpose of a checking account?

• To save money for long-term goals

• To invest in the stock market

• To facilitate daily financial transactions

• To lock money for a fixed period at a fixed interest rate

What is a credit card?

• A form of digital currency

• A plastic card that allows you to borrow money from a bank to make purchases

• A tool for unlocking doors

• A type of identification card

What does a credit score represent?

• A person's financial stability

• A numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual

• A person's yearly income

• A record of a person's criminal history

What is the difference between a debit card and a credit card?

• A debit card allows you to spend money by drawing on funds you have deposited at the bank.

• A credit card gives you a line of credit that you can spend and pay back over time.

• A debit card and a credit card are the same.

• Both cards directly withdraw money from your checking account.

What is a deposit?

• A sum of money placed or kept in a bank account, usually to gain interest.

• A payment made to a professional person or to a professional or public body in exchange for advice.

• A sum payable as a first installment on the purchase of something or as a pledge for a contract, the balance being payable later.

• The action of withdrawing money from an account.

What is discretionary expense?

• Money spent on essential goods and services

• Money spent on non-essential goods and services

• A fixed expense that cannot be adjusted

• A type of investment

What is FAFSA an abbreviation for?

• Federal Application For Student Aid

• Free Application For Student Aid

• Federal Aid For Students Application

• Free Aid For Students Application

What is a fixed expense?

• A cost that does not change with an increase or decrease in the amount of goods or services produced or consumed

• A cost that changes with the level of output or sales

• The total amount of money being transferred into and out of a business

• A financial obligation payable to a creditor