Financial Literacy Quiz

A ____ is usually paid on a biweekly or monthly basis for professional employment.

• Salary

• Wage

• Commission

• Bonus

Which of the following is the BEST reason to use cash for making purchases?

• Getting more cash from an ATM machine is easy to do.

• Keeping track of how much you have spent is simple.

• Splitting bills with friends is easier.

• Knowing what you have spent your money on is simple.

What factor has the biggest impact on a credit score?

• Having a variety of types of credit.

• The amount of money you owe on your credit cards.

• Your history of making payments on time.

• The number of years that you have used credit responsibly.

What is the best strategy to avoid paying interest on your credit cards?

• Pay the minimum balance each month.

• Pay the full balance each month.

• Have credit cards from two different banks.

• Make payments online.

Which of the following is not a source of income?

• Your annual salary for doing your job.

• Your monthly student loan payment.

• The stipend you receive for doing an internship.

• The wages you receive after a work shift.

Which of the following statements is TRUE?

• Applying for several credit cards in one year can help increase your credit score.

• Paying off your entire credit card balance can lower your credit score.

• The longer you use credit responsibly, the higher your credit score will be.

• People with low credit scores are usually low-risk borrowers.

Which of the following statements is TRUE about payday loans?

• They are harder to pay back because of low fees and high interest rates.

• They are harder to pay back because of high fees and high interest rates.

• They are easier to pay back because of lower fees and higher interest rates.

• They are easier to pay back because of lower fees and lower interest rates.

Amy's new summer job at the pool will pay her $9 per hour. Which term describes this type of hourly income?

• Salary

• Take-home pay

• Wage

• All of the above

Ashley wants to make a purchase using the money in her checking account. What method of payment should she use to access these funds immediately and directly?

• Credit card

• Debit card

• Direct deposit

• Prepaid card

What is the problem with paying only your minimum credit card balance each month?

• It lowers your credit score

• You have to pay interest

• The bank will cancel your credit card

• All of the above