Personal Financial Literacy Quiz

How does obtaining a higher level of education affect your income potential?

• It increases your income potential.

• It has no effect on your income potential.

• It decreases your income potential.

• It guarantees a job.

What is the relationship between human capital and job opportunities?

• Human capital has no effect on job opportunities.

• Higher human capital decreases job opportunities.

• Human capital guarantees a job.

• Higher human capital increases job opportunities.

What happens to the price of a product when it is scarce?

• The product becomes free.

• The price increases.

• The price remains the same.

• The price decreases.

Which of the following is an example of an unplanned spending decision?

• Saving for a vacation.

• Setting aside money for a new phone.

• Paying for a car repair after a breakdown.

• Buying groceries with a list.

What is the cost associated with borrowing money called?

• Principal

• Interest

• Dividend

• Capital

What is the main responsibility of a borrower when using credit?

• To pay back only the principal amount.

• To pay back the amount borrowed with interest.

• To pay back only when convenient.

• To pay back without any interest.

Why is it important to have a savings plan?

• To never have to work again.

• To spend more on luxury items.

• To avoid unplanned spending situations.

• To ensure you can always borrow money.

What is one benefit of saving money early for college?

• You have more time to accumulate savings.

• You can spend more on entertainment.

• You can avoid all student loans.

• You can skip college altogether.

How does charitable giving fit into personal financial literacy?

• It is unrelated to financial literacy.

• It is a form of unplanned spending.

• It is part of decision-making about income and spending.

• It is only important during holidays.

What is a key reason for saving money?

• To spend more on luxury items.

• To avoid paying taxes.

• To prepare for future expenses.

• To increase debt.