Financial Literacy Exam

What is a credit score?

• A number that represents how much money a borrower owes.

• An average of all of a borrower's credit accounts.

• A score from a test given to borrowers by lenders.

• A number that represents the risk a lender takes on a borrower.

What is interest?

• The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

• The fee that is paid to borrow money.

• The non-interest portion of a loan.

• The rate lenders charge borrowers for money.

What is a credit card?

• The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

• The non-interest portion of a loan.

• A card issued by a bank or business, allowing borrowers to purchase goods and services on credit.

• The fee that is paid to borrow money.

Credit allows you to?

• Purchase an item right now and pay for it right now.

• Receive an item right now and never pay for it.

• Pay for an item right now, but receive it later.

• Purchase an item right now and pay for it later.

What is the total amount of debt this person owes?

• $20,475

• $7,351

• $13,124

• $5,773

What is the definition of a "want"?

• Something you need to survive.

• Something you would like to have.

• Something that is necessary for you to survive.

• Something that is important for you to have.

An account that allows you to save money, as well as make deposits and make withdrawals.

• Checking

• Money Market

• Savings

• Certificate of Deposit

How many hours did this employee work during this pay period?

• 08

• 80

• 72

• 40

What is this employee's gross pay for this pay period?

• $1,280

• $972.67

• $872.53

• $7,680

James earns 10% of every sale he makes. This is an example of:

• Salary

• Wages

• Commission

• Assets