Lesson 1 Content Quiz Financial Literacy

Financial literacy means:

• Knowing how to grow crops

• Knowing how money works, including earning, spending, saving, and following money rules/laws

• Understanding only how to save money

• Memorizing bank names

Which of these is an example of budgeting?

• Returning a broken product to the store

• Planning how much money to spend on needs, wants, and savings

• Buying a used phone advertised as new

• Borrowing money from a friend

The FDIC protects:

• Stocks and bonds

• Bank deposits up to $250,000

• Lottery winnings

• Cryptocurrency wallets

The Truth in Lending Act requires lenders to:

• Give free gifts to customers

• Clearly explain the cost of borrowing money, including interest rates and fees

• Keep your credit report private

• Give loans without paperwork

On a paycheck, “gross pay” is:

• Your pay after deductions

• The total you earn before deductions

• Only your overtime pay

• The amount after taxes and bills

If your gross pay is $600 and you have $30 in local taxes, your net pay is:

• $630

• $570

• $600

• $30

Which of these is a risk in a financial decision?

• The chance of losing money or having a bad outcome

• A guaranteed profit

• Saving money in a bank account

• Buying something on sale

8. Local taxes pay for which two of the following services?

• Schools and roads

• Movie theaters and restaurants

• Shopping malls and amusement parks

• Gyms and coffee shops

9. One example of a consumer protection law in action is:

• A customer receives a refund after a faulty product is recalled by the manufacturer.

• A company increases the price of its products during a sale.

• A business advertises a product without listing its ingredients.

• A store refuses to accept returns for any reason.

A job offers $11/hour for 35 hours a week. How much would you earn before deductions in one week?

• $385

• $350

• $315

• $400