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Banking Basics & Financial Literacy

Total questions: 21

Worksheet time: 1hrs 3mins

Name
Class
Date
1.

Which of the following is an advantage of using a credit card?

a)

Interest is charged for the use of a credit card.

b)

Consumers can purchase things now, and pay for them later in the event of an emergency.

c)

You could be a victim of identity theft.

2.
Alyssa has her first job at the local bakery. After working for one week, she received her first paycheck. The total amount of money she is able to put in the bank is $75.62. What type of income does this amount describe?
a)
Gross Income
b)
Net Income
c)
Both Gross and Net Income
d)
None of the above
3.
Jonathan's new clothes cost a total of $572.50 before tax. What type of tax does Jonathan have to pay for his new clothes?
a)
Income Tax
b)
Property Tax
c)
Payroll Tax
d)
Sales Tax
4.
Anthony has a new job. He is paid twice a month. He wants to save $720 a year to put toward college. How much money does Anthony need to save from each paycheck? 
a)
Anthony should save $30 from each paycheck.
b)
Anthony should save $20 from each paycheck.
c)
Anthony should save $10 from each paycheck.
d)
Anthony should save $5 from each paycheck.
5.
If Sammy’s expenses are greater than his income, what must he do to balance his budget?
a)
Earn more money
b)
Spend less money on expenses
c)
Earn more money AND spend less
d)
None of the above
6.
Damian has $585 in his bank account. His expenses consist of a $150 cell phone payment, $75 for food, and $90 for his internet bill. He also wants to buy his favorite video game and wants to save $65 for the game. Damian wants to be sure he is within his budget because he wants to buy his mother a birthday gift. How much money will Damian have left in his bank account to buy his mother a gift? Will he have enough?
a)
$205; no he doesn't have anough
b)
$335; no he doesn't have enough
c)
$205; yes he has enough
d)
$355; yes he has enough
7.
Which of the following is considered an advantage to using a debit card to make purchases?
a)
Debit cards are convenient and easy to carry around.
b)
Purchases can be made quickly and easily.
c)
You can use many ATMs to get cash.
d)
All of the above.
8.

When you hear people talking about a Visa, Mastercard, or American Express card, they are most likely talking about a ____________

a)

debit card

b)

cash

c)

credit card

d)

cheque

9.

What is the average annual salary in Canada?

a)

$1,000,000.00 per year

b)

$150,000.00 per year

c)

$55,000 per year

d)

$25,000 per year

10.

What is an average cost of living per month for one person in Canda (NOT including rent/housing costs)?

a)

$1075.00

b)

$550.00

c)

$100.00

d)

$2020.00

11.

If you make about $55,000 a year in Ontario, you will need to pay income tax on that salary. After you pay income tax, what will your net pay (the money you actually get to have) be?

a)

$53,000.00

b)

$42,200.00

c)

$25,700.00

d)

$50,100.00

12.

What is a loan?

a)

when you take money out of your bank account

b)

when someone gives you money and not expecting anything back

c)

when someone passes away and leaves you money

d)

an amount of money borrowed and expected to be paid back with interest

13.

What is a budget?

a)

the money you make

b)

the money you have in your bank account

c)

the way you make your money

d)

a plan on how you will spend the money you earn

14.

What is interest?

a)

the bank that looks the most interesting

b)

the money the bank pays you for letting them look after your money

c)

the fees you pay for using your debit card

d)

the money you put in your bank account

15.

Deposit and withdrawal mean the same as...

a)

the money you put in and the money you take out of your bank account

b)

the money you put in and the interest you receive in your bank account

c)

the money you take out and the interest you receive in your bank account

d)

your budget and the money you spend

16.
Sales tax is __________ to the price
a)
subtracted
b)
added
c)
multiplied
d)
divided
17.

Discount is ____________ from the price.

a)

added

b)

divided

c)

subtracted

d)

multiplied

18.

An example of a need is:

a)

A Florida vacation

b)

a car

c)

a place to live

d)

a laptop

19.

It’s ok to skip payments on your bills some months, as long as you pay the next month.

a)

True

b)

False

20.

How does a bank make money?

a)

Keep some of the money you deposit in a savings account

b)

Charge interest on loans

c)

Charge a tax for depositing money

d)

Selling lollipops

21.

A mortgage is a loan for

a)

a car

b)

a university education

c)

real estate (houses, buildings, property)

d)

a business plan