Financial Literacy Quiz

What are income taxes levied on?

• Purchase of goods and services

• Value of real estate

• Earnings from various sources

• Donations to charity

What do sales taxes apply to?

• Earnings from various sources

• Purchase of goods and services

• Value of real estate

• Savings in bank accounts

What are property taxes based on?

• Earnings from various sources

• Purchase of goods and services

• Value of real estate

• Donations to charity

What is the primary function of deductions in financial education?

• Reduce taxable income

• Increase taxable income

• Reduce tax owed directly

• Increase tax owed directly

Which of the following is an example of a deduction?

• Child tax credit

• Earned income tax credit

• Home mortgage interest

• Sales tax

What is the primary function of credits in financial education?

• Reduce taxable income

• Increase taxable income

• Reduce tax owed directly

• Increase tax owed directly

Which of the following is an example of a credit?

• Charitable donations

• Home mortgage interest

• Child tax credit

• Sales tax

What should you consider when choosing a rewards program for a credit card?

• A. The color of the card

• B. Your spending habits

• C. The card's design

• D. The bank's location

Why is it important to opt for a credit card with a low interest rate?

• A. To increase your credit limit

• B. To reduce the risk of debt

• C. To get more rewards

• D. To avoid annual fees

Which type of fees should you be aware of when choosing a credit card?

• A. Annual fees, late payment fees, and foreign transaction fees

• B. Application fees, maintenance fees, and service fees

• C. Membership fees, processing fees, and activation fees

• D. Overdraft fees, transfer fees, and withdrawal fees