Financial Literacy Quiz

This type of retirement account offered by employers to their employees allows them to set aside tax-deferred income. Sometimes employers will even match the employee contribution up to a certain amount.

• mutual fund

• 401(k)

• Roth IRA

• Savings Account

This term refers to the original amount of a loan OR the original amount of money invested.

• principal

• interest

• rebate

• fixed rate

This is just a savings account with a slightly higher interest rate because the saver commits to a longer saving period for a set amount deposited.

• CD

• Money Market

• Online Banking

• Stocks

Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or the addition of interest).

• savings

• budgeting

• profit

• credit

What is a credit score?

• a three-digit score that tells lenders how much money you make each year.

• A five-digit numerical rating that reflects how likely you are to repay your debt.

• A three-digit numerical rating that reflects how likely you are to repay your debt.

• A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts

Which budget item will most likely take up the largest percentage of your income at 25-30%?

• House

• Car

• Insurance

• Food

What is the key difference between a bank and a credit union?

• A bank is a non-profit and a credit union is a for-profit business

• A credit union is a non-profit bank and a bank is for-profit

• A bank only helps businesses while a credit union helps the common people

• There is no major difference between them

All of the following are accounts you can get at a bank except:

• Savings

• Checking

• Money Market

• Lease

This is the tax that you pay from your paycheck.

• sales

• income

• property

• mortgage

What does your employer send you every year that highlights the amount of money you have made for your taxes?

• W4

• W5

• W2

• They don't send you anything