Financial Literacy Quiz

What is an asset?

• Something valuable owned by a person or company

• The cost of borrowing money

• A compromise to get something else

• A savings certificate with a fixed maturity date

What does interest refer to?

• The abundance of valuable resources

• The cost of borrowing money, usually expressed as a percentage

• Desired results or outcomes

• Something essential for survival

What is a trade-off?

• A compromise where you give up one thing to get something else

• The percentage at which interest is charged

• Something desired but not essential

• A savings certificate with a fixed maturity date

What does wealth refer to?

• The cost of borrowing money

• The abundance of valuable resources or material possessions

• Desired results or outcomes

• A savings certificate with a fixed maturity date

What is compounding interest?

• Interest calculated on the initial principal and also on the accumulated interest of previous periods

• The percentage at which interest is charged

• A compromise to get something else

• Something essential for survival

What is an interest rate?

• The abundance of valuable resources

• The percentage at which interest is charged or paid

• A compromise to get something else

• Something essential for survival

What is a need?

• Something essential for survival or well-being

• A savings certificate with a fixed maturity date

• The cost of borrowing money

• Desired results or outcomes

What type of bank account allows easy access to funds for daily transactions?

• Savings account

• Checking account

• Money market deposit account

• Certificate of deposit

What type of account earns interest on deposits?

• Checking account

• Savings account

• Money market deposit account

• Certificate of deposit

What is a fixed income instrument representing a loan made by an investor to a borrower?

• Stock

• Bond

• Mutual fund

• Index fund