Financial Literacy Quiz for Seniors

Which of the following is a type of insurance that covers medical expenses?

• Auto insurance

• Health insurance

• Homeowners insurance

• Life insurance

What is the primary purpose of a credit score?

• To determine your annual income

• To measure your ability to repay borrowed money

• To calculate your taxes

• To track your investments

Which of the following is considered a debt reduction technique?

• Increasing your credit card limit

• Making only minimum payments

• Debt snowball method

• Ignoring your bills

Which investment strategy involves spreading your money across different asset types to reduce risk?

• Diversification

• Speculation

• Short selling

• Hoarding

Which of the following is a benefit of renting a home instead of buying?

• Building equity

• Flexibility to move easily

• Tax deductions on mortgage interest

• Property appreciation

What does philanthropy primarily involve?

• Saving for retirement

• Donating time or money to help others

• Investing in stocks

• Buying insurance

Which of the following best describes a deductible in an insurance policy?

• The amount the insurer pays for a claim

• The amount you pay out-of-pocket before insurance covers the rest

• The total value of the policy

• The monthly premium

If you want to improve your credit score, which action should you take?

• Max out your credit cards

• Pay your bills on time

• Close all your credit accounts

• Apply for multiple new credit cards at once

Which investment strategy is most appropriate for someone seeking long-term growth with moderate risk?

• Investing only in savings accounts

• Putting all money in one stock

• Diversifying across stocks and bonds

• Keeping cash at home

A consumer is deciding between buying and renting a home. Which factor should they consider when making this decision?

• The color of the house

• The current interest rates

• The number of TV channels available

• The brand of kitchen appliances