Financial Literacy Quiz

A ________________________ is an illegal moneylender who charges extremely high interest rates, often targeting vulnerable individuals.

• loan shark

• banker

• financial advisor

• investment broker

Your ________________________ score is a numerical representation of your creditworthiness, based on your credit history and financial behavior.

• credit

• fitness

• academic

• employment

Which of the following is NOT a factor that affects your credit score?

• Payment history

• Length of credit history

• Types of credit accounts

• Your annual income

What is the term for the practice of spending less money than you earn?

• Budgeting

• Investing

• Living below your means

• Debt consolidation

Which type of loan typically has the highest interest rate?

• Mortgage

• Auto loan

• Personal loan

• Payday loan

What is the purpose of a credit report?

• To show your bank account balance

• To provide a detailed history of your credit accounts and payment behavior

• To list your assets and liabilities

• To calculate your net worth

What is the recommended maximum percentage of your income that should go towards paying off debt?

• 10%

• 20%

• 30%

• 40%

Avoiding debt can give you financial peace and a sense of hope for the future because:

• It reduces financial stress and allows for better financial planning.

• It increases the amount of taxes you have to pay.

• It makes it harder to save money for emergencies.

• It limits your ability to invest in new opportunities.