Financial Literacy Quiz

What is an Emergency Fund?

• A loan taken for a large purchase

• A savings account set up specifically for financial emergencies

• An investment in stocks

• A type of insurance policy

What does a Large Purchase refer to?

• A small daily expense

• A purchase that requires a significant amount of money

• A regular grocery shopping trip

• A subscription service

What is an Interest Rate?

• The total amount of a loan

• The percentage of principal charged by the lender for the use of its money

• The amount of money saved in a bank account

• The annual salary of an employee

What is Accrued Interest?

• Interest that has been paid in advance

• The amount of interest charged on a debt but not yet collected

• The principal amount of a loan

• The total amount of a mortgage

What does Compound Growth refer to?

• The decrease in value of an asset over time

• The average rate of growth for an investment over time

• The initial investment amount

• The interest rate on a savings account

What is Compound Interest?

• Interest paid on the initial principal only

• Interest paid on interest previously earned

• A fixed interest rate

• A type of loan

What is the Principal in financial terms?

• The interest earned on an investment

• The initial amount of money invested or borrowed

• The total amount of a loan

• The monthly payment on a mortgage

What does Rate of Return measure?

• The total amount of a loan

• The measure of an investment’s profit or loss

• The interest rate on a savings account

• The monthly payment on a mortgage

What is Inflation?

• The decrease in the cost of goods and services over time

• The persistent rise in the cost of goods and services over time

• The interest rate on a savings account

• The total amount of a loan

What does the Time Value of Money concept state?

• Money is worth the same today as in the future

• An amount of money is worth more today than in the future due to earning potential

• Money loses value over time

• Money gains value over time