QUIZS - Financial Literacy Test

Which account type typically offers higher interest than a savings account but requires money to be left untouched for a fixed term?

• Traditional Savings Account

• Money Market Account

• Certificate of Deposit (CD)

• Checking Account

What is a restaurant tip?

• A discount on the bill

• A customary extra cost beyond tax

• A fee for service

• A penalty for late payment

What does PMI stand for in the context of mortgages?

• Personal Mortgage Insurance

• Private Mortgage Insurance

• Public Mortgage Insurance

• Premium Mortgage Insurance

What does a breach of contract imply?

• One party fulfills all obligations

• One party fails to fulfill obligations

• Both parties agree to new terms

• Contract is renewed

Which of the following is a safer investment with a lower return?

• Stocks

• Commodities

• Bonds

• ETF/Mutual Funds

What is a characteristic of payday lenders?

• Low interest rates

• High interest, often criticized for targeting vulnerable groups

• Member-owned, offer better rates

• For those with bank accounts

What is the impact of a credit score?

• Determines eligibility for government benefits

• Affects ability to get loans

• Influences car insurance rates

• Sets the interest rate for savings accounts

What does a W-4 Form indicate?

• Annual earnings and tax withheld

• Identity and employment authorization

• How much federal tax to withhold

• Added cost at purchase

What does APR stand for in financial terms?

• Annual Payment Rate

• Annual Percentage Rate

• Annual Principal Rate

• Annual Profit Rate

What is the primary characteristic of stocks as an investment option?

• Low risk, low reward

• Ownership in a company; risky but high potential reward

• Loan to government/company; safer but lower return

• Investing in natural resources