Financial Literacy Quiz

What is the main objective of budgeting?

• Increase expenses

• Ensure that expenses do not exceed income

• Avoid financial planning

• Spend all income

Which of the following is NOT a typical category in budgeting?

• Housing

• Groceries

• Transportation

• Gambling

What is the expectation when investing money?

• Keep the money inactive

• Generate income or benefits over time

• Spend money immediately

• Lose money

Which of the following is a form of debt?

• Income

• Investment

• Mortgage

• Savings account

What is interest?

• The amount saved

• The cost of borrowing money

• The principal amount loaned

• The total amount of the debt

What is the purpose of saving?

• To avoid financial security

• To increase debt

• To set aside money for future use or emergencies

• To spend money immediately

What value is associated with our desire for belonging and relationship?

• Financial Values

• Physical Values

• Social Values

• Internal Values

What do financial values emphasize?

• Lack of organization

• Financial planning and saving

• Spontaneous spending

• Impulsive decisions

What is the main purpose of a savings account?

• Invest in stocks

• Save money for future use

• Pay off debts

• Spend on luxury items

Which of the following is considered a liquid asset?

• Real estate

• Stocks

• Cash

• Gold