SJC Financial Literacy Quiz

What is the formula to calculate simple interest?

• Principal x Interest Rate x Time

• Principal + Interest Rate + Time

• Principal / Interest Rate / Time

• Principal - Interest Rate - Time

If you deposit $1000 at a 10% per annum rate for 2 years, how much will it be worth at the end of 2 years with simple interest?

• $1200

• $1100

• $1300

• $1400

Which type of debt is considered 'good debt'?

• Debt used to purchase a house

• Debt used to buy a new phone

• Debt used for a vacation

• Debt used to buy clothes

Why do people save money?

• For emergencies, expensive goods, and financial security

• To waste on unnecessary items

• To avoid paying taxes

• To hide from creditors

What is the first step in setting savings goals?

• Identify what you would like to have in the future

• Spend all your money

• Borrow money from friends

• Avoid making a plan

How is interest often calculated?

• Per annum

• Per month

• Per week

• Per day

What is a key factor when assessing financial risk?

• The time frame of your personal investment goal.

• The number of investments you have.

• The amount of money in your savings account.

• The popularity of the investment.

What advice does Warren Buffett give about investment?

• Invest in things you don't understand.

• Only buy securities that you understand.

• Always invest in high-risk stocks.

• Follow the latest investment trends.

What is a potential benefit of higher investment risks?

• Guaranteed returns.

• Higher rewards with the risk of higher losses.

• No risk of losing money.

• Immediate financial security.

What should you have knowledge of to make informed investment decisions?

• The language of business and accounting.

• The latest fashion trends.

• The most popular social media platforms.

• The best travel destinations.