Financial Literacy Quiz

Anna would like to purchase a new mountain bike that costs $600. She only has $300 in her checking account now. Which of the following statements is true?

• She can use her debit card to pay for the bike and pay off the debit card over time.

• She can save up the remainder of the balance and then pay with a credit card.

• She can use her debit card to pay for the bike directly from her bank account.

• She can use her credit card to buy the bike now and pay it off over a period of time.

Kane is comparing two different regional banks. Which of the following statements is true? • First Texas Bank charges a $7 monthly fee • Republic of Texas Bank charges 1% of the checking account balance

• First Texas Bank will always be the best value.

• Republic of Texas Bank will always be the best value.

• If Kane typically has more than $700 in his checking account, then First Texas Bank is the best value.

• If Kane typically has less than $700 in his checking account, then First Texas Bank is the best value.

A vocational school offers different tracks for different types of mechanics. Over a 20-year career, how much more will the aircraft mechanic make than the automotive mechanic?

• $654,000

• $436,000

• $218,000

• $545,000

Which of the following situations does not describe the use of a credit card?

• may earn rewards

• can be used to build a positive credit history

• allows for unlimited purchases

• purchases may be subject to interest charges

Xavier is interested in the technology field. He is considering the education required and the corresponding salary. How much more would Xavier earn if he gets his bachelor’s degree instead of his associate’s degree over a 15-year career?

• $247,300

• $219,900

• $200,000

• $195,002

Two different banks are advertising their checking accounts. Which of the following is a better choice if the Jackson family averages about $2,200 in their checking account?

BANK OF TEXAS- $10.00 MONTHLY FEE IF YOUR ACCOUNT IS LESS THAN $3,000

MAIN STREET BANK- 1% OF YOUR MONTHLY BALANCE IF YOUR ACCOUNT IS LESS THAN $3,000

• Bank of Texas

• Main Street Bank

• They are equally good choices

The average salaries of three different positions are shown in the table below. Based on the information, how much more will the physician earn than the paralegal over a 15-year career?

Physician - $118,160

Accountant- $68,150

Paralegal - $49,500

• $68,660

• $432,400

• $864,200

• $1,029,900

Why is it important to compare prices before making a purchase?

• To spend more money

• To save money

• To buy the first item you see

• To impress others

Which is an advantage of using a credit card for purchases?

• Building debt

• Accruing interest

• Splitting large expenses into smaller payments

• Paying with cash

The Moore's want to go on vacation, but need to make a plan to save money first. What is the plan called?

• income

• budget

• revenue

• interest