Financial Literacy Certification Program Quiz

What is the purpose of a budget?

• To track expenses only

• To track investments

• To track income & expenses

• To track income only

What gives U.S. money its value?

• Backed by gold

• Backed by oil

• Full faith and confidence in the U.S. government

• Backed by silver

What is the role of the U.S. Department of the Treasury?

• All of the above

• Minting coins

• Collecting taxes

• Printing currency

What are the sources of income mentioned in the curriculum?

• Inheritance, gift, lottery, gambling

• Employment, investments, self-employment, rental income

• None of the above

• All of the above

What is the time value of money concept?

• A dollar today is worth the same as a dollar tomorrow

• A dollar today is worth less than a dollar tomorrow

• A dollar today is worth more than a dollar tomorrow

• A dollar today is worth double tomorrow

What is the advantage of earning interest on savings?

• It decreases the value of money

• It is taxable

• It has no impact on financial growth

• It increases the value of money over time

Why is it important to compare different banking products/services?

• To avoid banking altogether

• To save time

• To increase confusion

• To get the best deal

What is the role of the Federal Reserve in influencing interest rates?

• To decrease inflation

• To increase inflation

• To print money

• To manage inflation

What are the types of institutions mentioned for banking?

• Banks and Post Offices

• Credit Unions and Insurance Companies

• Banks and Credit Unions

• Credit Unions and Stock Brokers

What is the purpose of the Federal Deposit Insurance Corp. (FDIC) for banks?

• To insure deposits

• To provide loans

• To manage investments

• To regulate interest rates