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WorksheetsFinancial Literacy Glossary Quiz
Total questions: 15
Worksheet time: 8mins
Maya, Scarlett, and Grace are discussing their personal finances. Maya believes that an asset is the system of how money is made, regulated and used within a country or region. Scarlett thinks it's the total pay from an employer or other sources of income before taxes or deductions are taken out. Grace, however, argues that an asset is an item or resource with economic value that is owned or controlled by an individual, corporation, association, estate or country. Who is correct?
D. Maya
C. Scarlett
B. Grace
A. None of them
What does APR stand for?
A. Annual percentage rate
D. Annual profit return
B. Annual percentage yield
C. Asset percentage rate
Samuel recently started working and wants to manage his salary. What should be the purpose of his checking account?
A. To earn high interest on his savings
D. To borrow money for his purchases
B. To invest his salary in mutual funds
C. To keep his salary for living expenses and bills
What is the definition of compound interest?
B. The addition of interest to the principal and previously earned interest of a loan or deposit
C. The use of someone else's money, typically involving a fee to do so
D. The total pay from an employer or other sources of income before taxes or deductions are taken out
A. Interest calculated periodically on only the loan principal or investment principal and not on previously earned interest
What is the definition of a credit card?
A. A small plastic or metal card issued by a financial institution that allows the holder to borrow money to purchase goods or services from the creditor
B. A bank account with funds that are typically used for living expenses and other bills
C. A long-term loan used to buy or refinance real property, such as a home
D. A tool for investors that pools money from multiple shareholders to invest in a collection of stocks, bonds and money market funds
What is the definition of net worth?
D. The overall, ongoing increase in the price of goods and services in an economy over time
C. The cost of borrowing money
B. The value of possible alternatives that are given up when a person makes one choice instead of another
A. The measure of a person's financial condition, equal to assets minus liabilities
What is the definition of insurance?
B. An arrangement in which a company or agency protects the purchaser from unexpected financial losses
C. The use of someone else's money, typically involving a fee to do so
A. The total pay from an employer or other sources of income before taxes or deductions are taken out
D. The system of how money is made, regulated and used within a country or region
What is the definition of risk management?
B. The act of risks and devising ways to minimize losses
D. The cost of borrowing money
C. The total pay from an employer or other sources of income before taxes or deductions are taken out
A. A measure of the potential for loss or the uncertainty in the rate of return of an investment
What is the definition of tax credit?
B. A dollar-for-dollar reduction in the amount of tax owed
A. A government fee on income, activities and products that helps to pay for public services
D. The measure of a person's financial condition, equal to assets minus liabilities
C. A reduction in the amount of income you pay taxes on
Olivia, Abigail, and Liam are discussing their financial goals. Olivia says, 'I believe the purpose of saving money is...'
D. To borrow money for purchases
A. To earn high interest on savings
B. To invest in mutual funds
C. To set aside money for future spending, emergencies, short-term goals and investing
What is the definition of a mortgage?
A. A long-term loan used to buy or refinance real property, such as a home
B. A small plastic or metal card issued by a financial institution that allows the holder to borrow money to purchase goods or services from the creditor
C. The total pay from an employer or other sources of income before taxes or deductions are taken out
D. The system of how money is made, regulated and used within a country or region
Anika went to the grocery store and noticed that the prices of goods and services have been increasing over time. What is this phenomenon called?
A. This is called inflation, the overall, ongoing increase in the price of goods and services in an economy over time
B. This is the value of possible alternatives that Anika gave up when she decided to buy certain items instead of others
C. This is the cost of borrowing money
D. This is the measure of Anika's financial condition, equal to her assets minus liabilities
Kai, James, and Priya are discussing their financial habits. Kai says he uses a savings account. What could be the purpose of Kai's savings account?
A. To earn interest on his savings
B. To borrow money for his purchases
C. To invest in mutual funds
D. To keep funds for his living expenses and bills
Nora, Aria, and Zoe are planning a trip together. They are discussing their finances. Nora suggests they should make a budget. How would you define a budget in this context?
A. A plan for how to spend, save and invest money over a certain period of time
B. The total pay from an employer or other sources of income before taxes or deductions are taken out
C. The use of someone else's money, typically involving a fee to do so
D. The system of how money is made, regulated and used within a country or region
What is the definition of gross income?
A. The total pay from an employer or other sources of income before taxes or deductions are taken out
B. A dollar-for-dollar reduction in the amount of tax owed
C. The measure of a person's financial condition, equal to assets minus liabilities
D. The addition of interest to the principal and previously earned interest of a loan or deposit
