Financial Literacy

What is the definition of financial literacy?

• The ability to read financial documents

• The possession of skills, knowledge, and behaviors that allow an individual to make informed decisions regarding money

• The study of economics and finance

• The process of saving and investing money

What is the definition of disposable income?

• The total income before any deductions.

• The amount of money that an individual or household has to spend or save after income taxes have been deducted.

• The amount of money spent on essential items.

• The total savings of an individual or household.

How can money in a checking account be accessed?

• Only through bank visits

• Only through online transfers

• Via ATM machine, checks, or debit card

• Only through credit card

What is the main purpose of a savings account?

• To make frequent transactions

• To save money and earn interest

• To pay bills

• To invest in real estate

Which type of account usually earns interest?

• Checking account

• Savings account

• Both checking and savings accounts

• Neither checking nor savings accounts

What ensures the safety of money in checking and savings accounts?

• The bank's internal policies

• The Federal Deposit Insurance Corporation (FDIC)

• The account holder's personal security measures

• The stock market

What is one of the benefits of having a checking account?

• It helps you carry large sums of money.

• It is a safe and convenient way to pay for things.

• It allows you to avoid all types of transactions.

• It is only useful for online shopping.

What are two ways to pay for things using a checking account?

• Writing checks and using a debit card

• Using a credit card and writing checks

• Carrying cash and using a debit card

• Using a credit card and carrying cash

What does a checking account help you avoid?

• Carrying large sums of money

• Using credit cards

• Making online purchases

• Paying bills

Which of the following is an example of a deposit?

• paying for a purchase

• depositing a paycheck

• taking out cash from an ATM

• moving money from a savings account to a checking account