Financial Literacy Quiz

What is the definition of "interest" when it comes to loans and savings?

• The amount of money you owe on a loan

• The percentage of a loan amount charged as a fee over time

• The money you earn on savings over time

• The initial amount of money borrowed

Which of the following is considered a "need" rather than a "want"?

• Designer clothing

• Food

• Video games

• Movie tickets

What is the meaning of "budget"?

• A plan for spending and saving money

• The total amount of money you have

• A type of financial investment

• A bank account specifically for bills

Which of the following is an example of an asset?

• A car loan

• A student loan

• A house

• Credit card debt

What does "APR" stand for?

• Annual Payment Rate

• Annual Percentage Rate

• Annual Payment Return

• Average Payment Rate

Which of the following is NOT a type of credit card?

• Visa

• Mastercard

• American Express

• Dow Jones

What is the "stock market"?

• A physical marketplace where goods are bought and sold

• A place where only government bonds are traded

• A place where shares of publicly held companies are bought and sold

• A place where only precious metals are traded

What is the purpose of a "savings account"?

• To earn interest on deposited funds

• To spend money immediately

• To invest in risky ventures

• To take out loans

What is the "minimum payment" on a credit card?

• The smallest amount of money you can spend

• The smallest amount of money you must repay to the credit card company each month

• The largest amount of money you can spend

• The total amount of money you owe on the card

What is a "mortgage"?

• A type of insurance

• A loan used to purchase real estate

• A retirement account

• A credit card