Pre-Quiz: What do you know about money?

What is the primary purpose of a budget?

• To plan for spending and saving

• To keep track of your bank balance

• To increase your debts

• To spend as much money as possible

What is an interest rate?

• The fee you pay to open a bank account

• The percentage of money earned on savings or paid on loans

• A type of savings account

• The cost of using a credit card

What is a loan?

• A gift from the bank

• Money borrowed that must be repaid with interest

• Money saved in a bank account

• A financial advice service

Why is it important to save money?

• To buy things you don't need

• To have funds for future needs and emergencies

• To impress friends

• To pay more in taxes

What is a credit score?

• A measure of your wealth

• A rating that determines your ability to borrow money

• The amount of credit card debt you have

• Your annual income

What is the best way to avoid debt?

• Only use credit cards for emergencies

• Spend more than you earn

• Avoid budgeting

• Ignore your financial situation

What is the purpose of insurance?

• To increase your monthly expenses

• To provide financial protection against unexpected events

• To save money on taxes

• To invest in the stock market

What does it mean to diversify your investments?

• To invest all your money in one stock

• To spread your investments across different assets to reduce risk

• To put all your savings in a bank account

• To spend your money on luxury items

What is a stock?

• A type of savings account

• A share of ownership in a company

• A loan from the bank

• Money set aside for emergencies

What is inflation?

• A decrease in the price of goods and services

• An increase in the price of goods and services over time

• A type of savings account

• A government tax