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Personal Finance Literacy

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

An identification card issued by a bank that allows a user to buy items and services immediately and pay the cost at a later time.

a)

Credit Card

b)

Debit Card

c)

Bank Card

d)

Check

2.

An identification card issued by a bank that allows a user to immediately use money from an account. You have a personal identification umber (PIN) to keep it safe.

a)

Credit Card

b)

Debit Card

c)

ID Card

d)

Driver's License

3.

An estimate of income and spending for a set period of time, usually by month or year.

a)

Markdown

b)

Income Tax

c)

Sales Tax

d)

Budget

4.

What is income?

a)

The money that you earn

b)

The money that you spend

c)

Making a withdrawal

d)

Making a phone call

5.

Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...

a)

Cell phone plan

b)

Rent

c)

Clothing

d)

Electricity bill

6.

Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

a)

Will something bad happen if I don't have this?

b)

Do any of my friends have this item?

c)

How happy will this item make me?

d)

Will my teachers be excited if I buy this item, or will they be disappointed?

7.

Who has to pay taxes to the US government?

a)

Every citizen, regardless of their age or working status

b)

Every person or company that earns income in the US

c)

Anyone who owns a home or attends a public school

d)

No one has to - taxes are a voluntary program

8.

Which of the following is a want?

a)

Food

b)

Water

c)

Shelter

d)

Video game

9.

T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.

a)

True

b)

False

10.

Which of the following does NOT contribute to your credit score?

a)

Your payment history

b)

Which banks issued your credit cards

c)

Your debt-to-credit ratio

d)

Length of credit history

11.

Jim is 23 and has 1 credit card. What would be the best way to improve his credit score? (hint: choose 2 correct answers)

a)

Get 4 more credit cards in the next 3 months

b)

Diversify his credit - get an loan for the car he needs

c)

Make sure he makes his payments in full & on time

d)

Increase his credit utilization rate

12.
Which of the following is one of the 3 nationally recognized credit bureaus?
a)
Equifax
b)
Federal Reserve
c)
Postal Office
d)
Grocery Store
13.
The cost of borrowing money is referred to as 
a)
Interest 
b)
Annual Percentage Rate 
c)
Credit 
d)
Credit Line 
14.

You were a high school athlete. The university is paying your tuition while you play on the college team.

a)

scholarship

b)

grant

c)

work study

d)

loan

15.

You borrowed money through a federal program to pay for your education this year.

a)

scholarship

b)

grant

c)

work study

d)

loan