Money and Financial Literacy Quiz

What is the primary function of money?

• It allows people to place a monetary value on goods and services.

• It is a legally recognized form of payment.

• It functions as a medium of exchange, store of value, a unit of account, and a legal tender.

• It allows us to use it in the future as it keeps its value.

Which of the following is considered a factor influencing the view of money?

• Legal tender

• Means of exchange

• Personal attitudes

• Store of value

What does the term 'legal tender' refer to?

• It allows people and businesses to trade.

• It is a legally recognized form of payment.

• It allows people to place a monetary value on goods and services.

• It allows us to use it in the future as it keeps its value.

How do external influences affect the view of money?

• They directly affect the ability to save or spend.

• They vary in attitudes to risk and reward of saving, spending, and borrowing.

• They are affected by tradition, religion, and ethical beliefs.

• They change as a person grows up and goes through different life stages.

What is the definition of 'interest rates'?

• The ability to meet day-to-day expenditure and repay debts.

• The proportion of an amount that is charged as interest to the borrower.

• Money owed to a bank or financial institution.

• A score given to individuals on how likely they are to repay debts based upon their previous actions.

What does 'bankrupt' mean?

• The ability to meet day-to-day expenditure and repay debts.

• Money coming into a business.

• When an individual or organization legally states its inability to repay debts.

• The money spent by a business, or the amount of money needed to cover all expenses.

What is 'repossession'?

• The ability to meet day-to-day expenditure and repay debts.

• Money owed to a bank or financial institution.

• The money spent by a business, or the amount of money needed to cover all expenses.

• When a property/asset is collected from a business or someone who defaulted on a payment/loan for that property or asset.

What is an agreement with a third party to provide compensation against financial loss in line with the policy agreement?

• Insurance

• Inflation

• Borrowing

• Debit Card

What is a general increase in prices and fall in the purchasing value of money?

• Insurance

• Inflation

• Borrowing

• Debit Card

What is issued by banks with payments for goods and services being deducted directly from a current account?

• Cash

• Debit Card

• Credit Card

• Cheque