Financial Literacy Quiz

What does APR stand for in financial terms?

• Annual Percentage Rate

• Automated Payment Requirement

• Annual Payment Ratio

• Automated Percentage Rate

What is collateral in the context of a loan?

• A fee charged for late payment

• The interest rate applied to a loan

• Personal property pledged as security against a loan

• A type of credit card

What is a Revolving Credit?

• A loan with a fixed number of payments

• A credit card issued by a bank

• A type of loan or line of credit that can be borrowed and repaid repeatedly

• A loan where no collateral is pledged

Which type of credit card offers rewards for transactions?

• Bank Credit Card

• Rewards Credit Card

• Service Charge Card

• Secured Credit Card

What distinguishes an Unsecured Debt from a Secured Debt?

• Unsecured Debt has a higher interest rate

• Unsecured Debt is backed by collateral

• Unsecured Debt is a type of consumer loan

• Unsecured Debt is not backed by collateral

What does it mean to have debt?

• You have saved a lot of money

• You owe money to someone or a company

• You have a lot of money in your wallet

• You found money on the street

How can you achieve a financial goal?

• By spending all your money

• By saving and planning

• By wishing for more money

• By borrowing money from friends

What is a budget?

• A list of your friends

• A plan for how to spend money

• A type of savings account

• A game about money

What can you do to avoid debt?

• Spend more money than you earn

• Use all your savings to buy expensive things

• Only use money that you have, instead of borrowing

• Borrow money from many different people

Why is it important to track your expenses?

• To make sure you don't spend more than you have

• It's not important

• So you can brag to friends

• To make your parents happy