FL2: Revision 1

Which statement best describes financial literacy?

• A. understanding government taxes

• B. knowing how to earn, save and manage money wisely

• C. memorizing bank names

• D. avoiding all spending

Why is financial literacy important?

• A. It helps us make smart choices and prepare for future.

• B. It guarantees becoming rich.

• C. It removes the need to work.

• D. It replaces the use of banks.

What does it mean to invest your money?

• to spend it on shopping

• to save it in a bank

• to use it to try to grow more money

• to give it away to friends

What is a bond?

• a type of food

• a loan to a company or government

• a reward card

• a monthly bill

How is saving different from investing?

• Saving is only for rich people.

• Saving usually grows slower and is safer.

• Saving always makes you rich.

• Saving is done in the stock market.

What is one way a person can protect their money from risk?

• put all of it in one stock

• spend it quickly

• diversify it into different types of investments

• hide it at home

Why do companies sell stock?

• to advertise their product

• to raise money for their business

• to buy other companies

• to make customers happy

What is one way to make money from owning a stock?

• by using it to buy groceries

• by selling it for more than you paid or getting dividends

• by using it as a credit card

• by renting it out

What is a scam?

• a safe way to buy things

• a plan to give people free products

• a trick to steal your money or personal information

• a type of investment

What is one red flag that can warn you of a scam?

• a friendly tone

• a clear company name

• asking for money or personal details quickly

• offering a receipt