Financial Literacy Quiz

What is the definition of "Account balance"?

• The increase in value of an asset

• The amount of money in your bank account at a given point in time

• A degree earned after completing a 2-year course of study

• Interest on a loan or a deposit that accrues on both the initial principal and the accumulated interest from previous periods

What does "Adjusted Gross Income" refer to?

• Gross income minus adjustments to income

• A table of periodic loan payments

• A degree earned after completing a 4-year course of study

• A financial account maintained by a bank

What is an "Amortization schedule or amortization table"?

• The increase in value of an asset

• A table of periodic loan payments showing the amount of principal and the amount of interest for each payment until the loan is paid off

• A document that orders a bank to pay a specific amount of money

• A payment card that can be used in place of cash to make purchases

What does "Appreciation" mean in financial terms?

• The amount of money in your bank account at a specific date and time

• The increase in value of an asset

• A degree earned after completing a 2-year course of study

• A deposit account held at a financial institution

What is an "Associate degree"?

• A degree earned after completing a 2-year course of study

• A degree earned after completing a 4-year course of study

• A financial account maintained by a bank

• A document that orders a bank to pay a specific amount of money

What is the definition of "Compound Interest"?

• Interest on a loan or a deposit that accrues on both the initial principal and the accumulated interest from previous periods

• A card issued to consumers that allows them to make purchases with the agreement to pay back the card issuer

• A payment card that can be used in place of cash to make purchases

• Adding money into your bank account; increases your balance

What is a "Credit card"?

• A card issued to consumers that allows them to make purchases with the agreement to pay back the card issuer

• A payment card that can be used in place of cash to make purchases

• A document that orders a bank to pay a specific amount of money

• A deposit account held at a financial institution

What does "Depreciation" refer to?

• When an asset decreases in value over time

• The increase in value of an asset

• A degree earned after completing a 4-year course of study

• A financial account maintained by a bank

What term represents the costs of doing business including items like rent, payroll, advertising, and raw materials?

• Fees

• Expenses

• Net Loss

• Price

What is the money charged by the bank to process transactions for your account called?

• Interest

• Paycheck

• Fees

• Principal