Financial Literacy Quiz

An example of a financial institution is:

• A department store.

• A bank.

• A school.

• An ATM.

Who uses financial institutions?

• Adults.

• College graduates.

• Almost everyone who maintains a savings or checking account uses debit or credit cards or needs a loan.

• Account holders with lots of cash.

Identify the incorrect statement:

• A debit card allows for an immediate electronic transfer from a card holders savings or checking account.

• A debit card is essentially a paper check but doesn’t require the processing time a check does.

• A debit card is handy in an emergency when you don’t have the money to spend.

• A debit card is a pay-now payment type with no grace period for payment.

When lenders lend money to borrowers, they charge an additional fee for the use of their money. This is called:

• Debit

• Stock

• Interest

• Credit

All of the following are an advantage of having a credit card except:

• You can buy-now and pay-later.

• You are charged interest on any unpaid balances.

• It allows you to pay for emergencies you might not be able to afford.

• None of the above.

Who pays taxes?

• Most people who have a job.

• Most people who purchase items.

• Most people who own property.

• All the above.

What are the three main types of taxes?

• Income, Sales and Property.

• Unemployment, Sales, and Property.

• Federal Income, Unemployment, and State.

• State, Property, and Unemployment.

What is Social Security?

• A private insurance system just for the elderly.

• A free insurance system.

• The amount of money someone has.

• None of the above.

Federal, Social Security, and Medicare are all types of taxes?

• True

• False

The total amount of earnings made each month, after all deductions have been taken out is known as:

• Gross Annual Income.

• Gross Monthly Income.

• Net Annual Income.

• Net Monthly Income.