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Financial Literacy

Total questions: 40

Worksheet time: 22mins

Name
Class
Date
1.

Debit card purchases are “buy now, pay now” so you must have enough money in your account to cover your purchase.

a)

True

b)

False

2.

If you spend more money than is in your account, your bank will charge you a fee.

a)

True

b)

False

3.

When using a credit card, you will be charged interest if the balance is not paid within 30 days.

a)

True

b)

False

4.

A debit card is basically an electronic check.

a)

True

b)

False

5.

Which of the following are financial institutions?

a)

bank

b)

museum

c)

library

d)

credit union

6.

The amount left over from your paycheck after taxes and deductions are withheld is called ______________.

a)

balance

b)

transaction

c)

gross balance

d)

net pay

7.

You can continue to write checks as long as you have checks in your checkbook.

a)

True

b)

False

8.

A direct deposit is when you take your paycheck directly to the bank after you receive it.

a)

True

b)

False

9.

What is the machine called that is used to withdraw money and that is found in shopping centers, in convenience stores, and outside financial institutions?

a)

GWB (Great Wonderful Bank)

b)

ATM (Automatic Teller Machine)

c)

EBT (Easy Bank Teller)

d)

AMM (Awesome Money Maker)

10.

Which accounts usually pay you interest?

a)

checking

b)

banking

c)

savings

d)

credit

11.

What does deposit mean?

a)

remove

b)

take away

c)

put into

d)

spilled

12.

What does withdraw mean?

a)

put into

b)

transaction

c)

write a check

d)

remove

13.

Which definition matches gross income?

a)

The amount of money made after deductions are taken out

b)

Money that you collect

c)

The amount of money made before deductions are taken out

d)

money that is earned as a result of work

14.

Which definition matches income?

a)

Money that you collect

b)

money that is earned as a result of working

c)

The amount of money made before deductions are taken out

d)

The amount of money made after deductions are taken out

15.

What is a budget?

a)

Money that I can spend on what I want

b)

Something that is hard to understand

c)

An organized plan for spending and saving money

16.

What is a payroll tax?

a)

Money paid to the government based on money you earn

b)

Money an employer withholds from an employee’s paycheck

c)

Money added to the cost of items or services

17.

What are income taxes?

a)

Money added to the cost of items or services

b)

Money paid to the government based on money you earn

c)

A portion of the value of items that is paid to a city or government

d)

Money an employer withholds from an employee’s paycheck

18.

The longer the money is invested the better?

a)

True

b)

False

19.

A type of savings that signifies that you own a part of a corporation and a claim to their assets and earnings.

a)

Stock

b)

Share

c)

Dividend

d)

none is correct

20.
When you buy a stock, you are buying a small piece of _______ in a company.
a)
debt
b)
ownership
c)
risk
21.

What is debt?

a)

Money that is spent

b)

Money that is owed because of borrowing

c)

Money that you lend to others

22.

Credit means you ________now and ________ it back later.

a)

Borrow, Pay

b)

Pay, Borrow

c)

Pay, Pay

23.

Credit Card is a type of what?

a)

bond

b)

Loan

c)

savings

24.

What is the best way to manage credit and debt?

a)

use rewards

b)

spend now worry later

c)

Make big purchases

d)

set goals and budget

25.

What is a mortgage?

a)

Car loan

b)

business loan

c)

Home loan

26.

Select all the main credit card types

a)

VISA

b)

Mastercard

c)

American Express

d)

Disney

27.
This is paid to the Government once a person's income passes a set amount. 
a)
Fees
b)
Wages
c)
Tax
d)
Salary
28.
A word to describe yearly.
a)
annual
b)
monthly
c)
half-yearly
d)
fornightly
29.

Taxes are collected by

a)

Businesses

b)

Parents

c)

Foreign countries

d)

Government

30.

IRS stands for

a)

Internal Revenge Service

b)

International Revenue System

c)

Internal Revenue Service

d)

Inspection Ravioli Sauce

31.

The official date for when taxes are due

a)

January 15

b)

February 15

c)

March 15

d)

April 15

32.

When you receive a new job, you are mandated to file a

a)

Complaint

b)

Divorce

c)

W-4

d)

W-2

33.

When you are ready to file for taxes you must have form

a)

W-2

b)

W-6

c)

WD40

d)

W-2484

34.

The two common filing status are

a)

Single

b)

Married

c)

Both Single and Married

d)

Neither Single or Married

35.

Roads, police, schools, governmental agencies, fire and emergency services are funded by taxes.

a)

True

b)

False

36.
My credit history does not affect my chances for renting my first apartment.
a)
True
b)
False
37.
When I apply to borrow money for a car, the loan company will most likely look at my credit history.
a)
True
b)
False
38.
I should review my credit report for errors.
a)
True
b)
False
39.
A credit report contains my personal information such as my address and social security.
a)
True
b)
False
40.
Late payments are retained on credit reports for 7 years.
a)
True
b)
False