Financial Literacy, Kitchen, & Food Safety Test (1 point each)

What kind of money has no value by itself, but the government says it should be used and accepted?

• Commodity money

• Fiat money

• Gold

A paper dollar that could be traded for gold is an example of:

• Representative money

• Savings money

• Loan money

Which one is the correct 50-30-20 rule?

• 50% Fun

  30% Savings

  20% Needs

• 50% Needs

  30% Wants

  20% Savings

• 50% Savings

  30% Wants

  20% Needs

Which type of money has real value like leather, shells, and corn?

• Credit money

• Fiat money

• Commodity money

Which account earns interest and helps you save over time?

• Piggy bank

• Checking account

• Savings account

What is interest?

• Extra money you get for saving or pay for borrowing

• A type of tax

• A bank fee

What does the word “principal” mean in a loan?

•  a. The total amount with interest

•  b. The original amount borrowed
  

• c. The cost of using money

What does a debit card do?

• Uses borrowed money

• Adds money to your account

• Uses your own money from a bank account

What happens when you use a credit card?

• You pay with your savings

• You borrow money to pay later

• You get free items

Which kind of loan charges interest on the original amount only?

• Simple interest

• Compound interest

• No-interest