Financial Literacy Quiz

What is a loan?

• A type of investment

• A type of insurance

• Money borrowed that must be repaid with interest

• Money saved for future use

What is the purpose of liability insurance?

• To reduce tax liability

• To increase the value of assets

• To create new assets

• To compensate for losses caused to others

Which type of loan is typically unsecured?

• Mortgage loan

• Auto loan

• Personal loan

• Home loan

Which investment typically has the highest potential return?

• Savings account

• Stocks

• Fixed deposits

• Bonds

What is assurance in the context of insurance?

• Insurance covering property loss

• None of the above

• Insurance covering life

• Insurance covering health expenses

Which type of bank account typically earns interest?

• Savings account

• Demat account

• Current account

• Checking account

What is an ATM used for?

• Withdrawing money

• Checking account balances

• Depositing money

• All of the above

The term “default in borrowing” refers to:

• Applying for a new loan

• Failure to repay a loan

• Paying off a loan early

• None of the above

What is savings?

• Money set aside for future use

• None of the above

• Money borrowed from a bank

• Money spent on daily expenses

What is the key function of insurance?

• Compensate loss due to damage

• Protect assets from damage

• Increase the value of assets

• Reduce asset value