Financial Literacy Quiz

What is the definition of a bank?

• A non-profit organization that offers financial advice.

• A for-profit institution that offers personal loans, mortgages, and other services.

• A government institution that prints and distributes money.

• A place where only savings accounts are offered.

What is the definition of a budget?

• A plan for short-term investments.

• A record of income and spending and a plan for managing your money.

• A detailed report of a company's earnings.

• A summary of one's debt and credit card statements.

What does the term 'credit' refer to?

• The amount of money in one's savings account.

• The amount of financial trust extended to a person or a business or lender; a loan.

• The interest paid on a loan.

• The total amount of money one has earned.

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

• A debit card allows you to borrow money, while a credit card uses your own money.

• A debit card is only for online purchases, while a credit card is for in-store purchases.

• A debit card looks like a credit card but operates like cash; money is taken from the person's bank account (usually checking).

• There is no difference; both cards serve the same function.

According to the learning material, what is 'interest'?

• A fee for maintaining a bank account.

• A penalty for late payment on a loan.

• A fee received or paid for the use of money.

• The profit made from an investment.

What is the distinction between 'needs' and 'wants'?

• Needs are goods or services that make people comfortable, while wants are essential for survival.

• Needs are goods or services that people cannot survive without, while wants are for comfort or contentment but not essential for survival.

• Wants are financial obligations, while needs are financial assets.

• Wants are items bought on credit, while needs are items bought with cash.

Which of the following is NOT a type of tax?

• Income tax

• Sales tax

• Happiness tax

• Property tax

What is gross pay?

• The amount you earn after taxes and deductions.

• The total amount you earn before any deductions.

• The amount you receive after sales tax is applied.

• The total amount of taxes you owe at the end of the year.

When is Tax Day in the United States?

• April 1

• April 15

• May 1

• July 4

What are deductions on a paycheck?

• Bonuses added to your gross pay.

• The total amount of money you earn.

• Amounts subtracted from your gross pay, including taxes and benefits.

• The final amount you receive after sales tax is applied.