Financial Literacy Quiz

A budget can help you reach a final financial goal by

• Showing you Total Monthly Income and Total Monthly expenses

• Allowing you to see where you can cut back on spending

• Giving you tools to Pay Yourself First and save.

• All the above

Money in your emergency fund could be wisely used

• to pay for a vacation

• To pay a down payment on a new car

• To pay for an unforeseen health expense

• To spend on a night out.

A value can be described as...?

• Something basic for your survival

• Something you desire to make your life more comfortable

• A willingness to give up something now in exchange for a future benefit

• A belief or idea you consider important or desirable

Tags

CCSS.RI. 9-10.9

CCSS.RI.11-12.9

CCSS.RL.11-12.2

CCSS.RL.8.2

CCSS.RL.9-10.2

If you make a mistake writing out a check, you should write _______ over it and record it as a _________ check

• Outstanding - Outstanding check

• Bounced - Bounced check

• Void - Voided check

• Restricted - Restricted check

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Which of the following could NOT be called income?

• An allowance

• A paycheck

• Interest paid on a loan

• Interest received from a savings account

The basic rule of a risk to return relationship in investing is that the ________.

• Lower the risk, the higher the rate of return

• Higher the risk, the higher the rate of return

• Higher the risk, the lower the rate of return

• Risks and returns on investments are not related

An example of an investment that is convenient, professionally managed, and allows for diversification is called a ________________________.

• Certificate of Deposit

• Stock

• U.S. Savings Bond

• Mutual Fund

When people buy stock on the stock market...

• The corporation loses money.

• The corporation receives money.

• The people buying the stock receive money.

• The people selling the stock receive money.

Which of the following about Mutual Funds is true?

• All mutual funds are the same

• Mutual funds allow investors to spread risk among several stocks and bonds

• Everyone can pick the stocks in the fund

• Mutual funds do NOT charge management fees

Beginning to save and invest $20 a week at age 20...

• Will create more money for retirement than if you waited until age 30 when you feel you can afford to save more.

• Will put you on the road to bankruptcy.

• Will not make a difference in the long run.

• Will be fiscally irresponsible