Financial Literacy Questions

Which of the following are examples of needs?

• Food, water, shelter

• Luxury car, designer clothes

• Smartphone, laptop

• Vacation, entertainment

What is income?

• A type of expense

• A form of savings

• Money received, especially on a regular basis, for work or through investments

• A type of loan

What is an expense?

• A source of income

• A cost incurred in the process of earning revenue

• A type of investment

• A form of savings

What is an opportunity cost?

• The cost of an alternative that must be forgone to pursue a certain action

• The monetary expense of a product or service

• The total revenue minus total expenses

• The cost of producing one additional unit of a product

What things should you pay attention to when buying an alarm clock?

• Price and brand

• Design and size

• Features and functionality

• All of the above

What does it mean to “consider your source” when reading product reviews?

• It means to check the credibility and reliability of the reviewer.

• It means to ignore the reviewer's opinion.

• It means to only read reviews from popular websites.

• It means to focus on the length of the review.

What are two good reasons to build extra cash into your budget?

• To cover unexpected expenses and emergencies

• To increase spending on luxury items

• To reduce the need for financial planning

• To avoid paying taxes

What is a unit price?

• The total cost of all items

• The cost per individual item

• The price after discount

• The price including tax

How could paying attention to the unit price of an item help you make decisions to buy items?

• It helps you compare the cost-effectiveness of different products.

• It allows you to ignore the total price of the item.

• It ensures you always buy the cheapest item available.

• It prevents you from buying items on sale.

How could paying with cash help with budgeting?

• It makes tracking expenses easier.

• It limits spending to available cash.

• It encourages saving by avoiding credit.

• It provides discounts on purchases.