Financial Literacy Quiz

What is the primary purpose of a budget?

• Tracking income and expenses

• Increasing debt

• Avoiding savings

• Ignoring financial goals

What does a credit score measure?

• Creditworthiness

• Monthly expenses

• Credit card limit

• Annual income

Which of the following is a form of investment?

• Loan

• Mortgage

• Stock

• Credit card

What is the impact of inflation on purchasing power?

• Increases it

• Has no effect

• Decreases it

• Stays constant

Which type of tax is imposed on your income?

• Sales tax

• Property tax

• Income tax

• Excise tax

What distinguishes a debit card from a credit card?

• Linked to a bank account

• Credit limit

• Interest charges

• Both a and c

What is the purpose of a savings account?

• To borrow money

• Long-term investments

• Emergency fund and use for future goals

• None of the above

Which investment option is considered less risky?

• Stocks

• Bonds

• Mutual funds

• Cryptocurrencies

What is the formula for compound interest?

• A = P(1 + r)^t

• A = P(1 + r/n)^(nt)

• A = P * r * t

• A = P/r

What does a 529 plan typically involve?

• Retirement savings

• College savings

• Emergency fund

• Home mortgage