Financial Literacy Quiz

What is the primary purpose of an emergency fund?

• To invest in stocks

• To cover unexpected expenses

• To pay off credit card debt

• To save for a vacation

The Rule of 72 is used to estimate:

• The time it takes to double your money at a given interest rate

• Your credit score growth

• The best time to invest in the stock market

• The amount you should save monthly

Which of the following is a responsible credit habit?

• Paying only the minimum balance on your credit card

• Using more than 50% of your available credit

• Paying your bills on time every month

• Applying for multiple credit cards at once

Which factor has the largest impact on your credit score?

• Length of credit history

• Payment history

• Types of credit used

• Number of credit inquiries

What is an example of a "want" rather than a "need"?

• Groceries

• Electricity bill

• Designer clothing

• Rent payment

How much should an emergency fund ideally cover?

• One month's worth of expenses

• Three to six months' worth of expenses

• A year’s worth of expenses

• Your annual salary

What does it mean to own a stock?

• You own a portion of the company’s debt

• You own part of the company and may earn dividends

• You have a loan agreement with the company

• You have a fixed interest investment

If you invest money at an annual interest rate of 8%, how long will it take to double according to the Rule of 72?

• 9 years

• 12 years

• 18 years

• 24 years

Which of these actions will NOT help improve your credit score?

• Paying off your credit card balance in full

• Keeping your credit utilization below 30%

• Closing old credit card accounts you no longer use

• Reviewing your credit report for errors

What is the best strategy to avoid impulse buying?

• Carry cash instead of cards

• Make a shopping list and stick to it

• Shop during sales only

• Buy items that are on display at the checkout counter