Everfi Financial Literacy Test

Which of these best describes a budget?

• A list of goals for the year
• An estimate of income and expenses over a set period of time
• A prediction of how much money you will make
• A list of things you want to buy

Which of these is a variable expense?

• Electricity bill
• Rent
• Insurance
• House Payment

Which payment method creates a debt that you have to pay back later?

• Debit Card
• Gift Card
• Credit Card
• Bank Card

In the 50/30/20 method of budgeting, what percent of your money should be spent on needs

• 50%
• 30%
• 20%
• 100%

The cost for one unit of an item

• Opportunity cost
• Variable expense
• Unit price
• Fixed expense

Which of the following is NOT a need?

• Food
• Shelter
• Brand name clothes
• Clothes

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

• debit card
• Fixed expenses
• Salary
• credit card

Which review of an online clothing store is more trustworthy and why? Review A states: “All 5 of the shirts were high quality but small. Order a size up” (verified purchase). Review B states: “I love everything from this site. Don’t miss out on their great sales” (sponsored review).

• Review A is more trustworthy because they gave more details about their purchase.
• Review A is more trustworthy because it was a verified purchase
• Review B is more trustworthy because they let you know about sales that can save you money
• Review B is more trustworthy because the company spent money paying them to leave a review.

To deposit a check using a mobile banking app, you have to

• check your interest rate
• have more than one account
• upload pictures of your signed check
• mail the check to your financial institution

What is the benefit of a savings account?

• A savings account helps you track your spending.
• A savings account creates investment opportunities.
• A savings account allows you to borrow money.
• A savings account earns interest.