Personal Financial Literacy Quiz

What is the primary purpose of taxes according to the video?

• To increase personal savings

• To fund private businesses

• To pay for personal expenses

• To support government services

What percentage of personal financial literacy is covered by understanding the vocabulary?

• 100%

• 75%

• 50%

• 90%

Which type of tax is added when you purchase items at a store?

• Income tax

• Property tax

• Sales tax

• Corporate tax

What is the significance of April 15th mentioned in the video?

• Bank holiday

• Start of new semester

• Tax day

• End of financial year

What does 'gross income' represent?

• Only taxable income

• Income from investments only

• Total income before deductions

• Income after taxes

What happens to your paycheck due to deductions?

• Remains the same

• Increases due to overtime

• Fluctuates based on government policy

• Decreases due to mandatory deductions

What is deducted from your gross income to arrive at your net income?

• Optional expenses

• Investment profits

• Deductions like taxes

• Only federal taxes

What does a 'debit' in your bank account signify?

• Money being withdrawn

• Money being deposited

• An increase in account balance

• A transfer of funds to another account

What is the purpose of a budget?

• To record past expenses

• To plan spending and income

• To increase wealth

• To calculate taxes

What does a balanced budget mean?

• Income and expenses are equal

• Income is double the expenses

• There are no expenses

• Expenses are more than income