Financial Literacy Quiz

Are credit cards typically more secure than a debit card?

• No

• Yes, because credit cards have fraud protection and debit cards typically don’t.

• Yes, because credit cards have bigger credit lines

• It really depends on the bank.

Recall the Dumb Dan – Smart Sally comparison in the Sethi book.  Both owed $5,000 on their credit cards with an APR of 14%.  The minimum payment was $100 per month. 

·       Dumb Dan only the minimum payment (the minimum payment goes down as the balance goes down) until it was paid off. 

·       Smart Sally kept paying $100 per month until the balance was paid in full. 

About how long did it take Dumb Dan to pay off the $5,000?

• 2 1/2 years

• 6 years

• 25 years

Tags

CCSS.HSF.BF.A.2

Recall the Dumb Dan – Smart Sally comparison in the Sethi book.  Both owed $5,000 on their credit cards with an APR of 14%.  The minimum payment was $100 per month. 

·       Dumb Dan only the minimum payment (the minimum payment goes down as the balance goes down) until it was paid off. 

·       Smart Sally kept paying $100 per month until the balance was paid in full. 

About how long did it take Smart Sally to pay off the $5,000?

• 2 1/2 years

• 6 years

• 25 years

Tags

CCSS.HSF.BF.A.2

What should you be using your savings account for? Choose all that apply

• Only large purchases

• Gas, groceries, eating out, travel

• Rent, paying credit card balances each month, monthly savings contribution, investment contribution

• Emergency fund, short term savings like buying a car or house

What should you be using your checking account for? Choose all that apply

• Only large purchases

• Gas, groceries, eating out, travel

• Rent, paying credit card balances each month, monthly savings contribution, investment contribution

What should you be using your credit card for? Choose all that apply

• Only large purchases

• Gas, groceries, eating out, travel

• Rent, paying credit card balances each month, monthly savings contribution, investment contribution

• Emergency fund, short term savings like buying a car or house

According to Sethi, which types of features should your bank account have? Check all that apply

• ATM Fees

• Overdraft fees

• Minimum Balance Requirements

• Debit card fees

• None of these

Which of the following interest rates is most likely from a high-yield online savings account?

• 0.02%

• 4.5%

• 11%

• All equally likely

Tags

CCSS.7.RP.A.3

Which of the following interest rates is most likely from a typical local bank on a savings account?

• 0.02%

• 4.5%

• 11%

• All equally likely

Tags

CCSS.7.RP.A.3

Which of the following interest rates is consistent with the 10-year average for the S&P 500?

• 0.02%

• 4.5%

• 11%

• All equally likely