Financial Literacy Vocab Quiz #1

What is the term for the ability to understand and effectively use various financial skills?

• Asset

• Financial Literacy

• Credit Score

• Default

Which term refers to something valuable that an individual or company owns?

• Budget

• Debt

• Interest

• Asset

What is the legal process called when a person or business cannot repay their outstanding debts?

• Bankruptcy

• Credit

• Default

• Income

What is a plan for managing income and expenses called?

• Credit Report

• Budget

• Interest

• Asset

What is the practice of comparing prices and features of similar products before making a purchase?

• Creditworthiness

• Comparison Shopping

• Pay Yourself First

• Default

What is the term for the ability to borrow money or access goods or services with the understanding that you'll pay later?

• Credit

• Income

• Asset

• Debt

What document provides a detailed history of an individual's borrowing and repayment habits?

• Credit Report

• Mortgage

• Promissory Note

• Lien

What is a numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of an individual?

• Credit Score

• Income

• Asset

• Default

What term describes the likelihood that a borrower will default on their debt obligations?

• Liquidity

• Financial efficacy

• Bona fides

• Creditworthiness

What is the main difference between a debit card and a credit card?

• Debit cards allow borrowing money

• Credit cards require immediate payment

• Debit cards use existing funds

• Credit cards do not affect credit score