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BizTown Financial Literacy Test - Part 1

Total questions: 55

Worksheet time: 32mins

Name
Class
Date
1.

Which of the following is a financial istitution?

a)

library

b)

city hall

c)

museum

d)

credit untion

2.

True or False: A bank is a financial institution.

a)

true

b)

false

3.

An account that allows you easy access to your money through a debit card, atm, or checks is called...

a)

credit union

b)

savings account

c)

checking account

d)

personal loan

4.

Which is required when you deposit money into your account?

a)

a signed deposist slip

b)

your account number

c)

a gift for the bank teller

d)

swipe your credit card

5.

What is your net pay?

a)

the amount of your paycheck before all taxes and deductions are taken out

b)

the amount of your paycheck after all taxes and deductions are taken out

6.

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

a)

true

b)

false

7.

What is a direct deposit?

a)

When you receive your paycheck, you take the check directly to the bank to deposit

b)

Your job deposits your paycheck directly into your account electronically

8.

All transactions should be recorded in your bank register. True or False

a)

True

b)

False

9.

How are credit cards and debit cards different?

a)

they are exactly the same

b)

a credit card is a loan, while a debit card deducts money directly from your checking account

c)

a credit card allows you to purchase gas only

d)

a debit card is a loan, while a credit card deducts money directly from your checking account

10.

Why do banks offer different kinds of accounts?

a)

there is only one type of bank account

b)

different customers have different financial needs and goals

c)

people voted for different accounts

11.

Which of these statements about savings accounts is NOT true?

a)

If the economy is doing poorly you should remove all money from your savings account and bury it.

b)

the higher the interest rate, the more money you will earn.

c)

the longer the money is saved, the more you will have for the future

d)

the more money you add to your savings account, the faster your money will grow

12.
A __________ is an account that earns interest.
a)
checking account
b)
savings account
13.
A citizen can write a _______which takes money directly from their checking account.
a)
debit card
b)
credit card
c)
interest
d)
check
14.
When somebody takes out a loan from the bank, they must pay back the amount they borrowed plus _______.
a)
interest
b)
credit
c)
debit
d)
tax
15.
A card owner has to pay interest when he or she uses their _______.
a)
credit card
b)
debit card
16.
Which is true about a debit card?
a)
It is a loan from the bank and requires the owner to pay interest.
b)
It is the same as a credit card.
c)
It electronically makes purchases from a checking account.
d)
It is a written order to pay money from a checking account.
17.
What is an advantage of using a credit card?
a)
They are convenient.
b)
The owner does not have to pay interest.
c)
You are paying with your own money.
d)
Money comes from your checking account.
18.
What is a disadvantage of using a debit card?
a)
You must remember your pin.
b)
It cannot be replaced if lost or stolen.
c)
You must pay interest.
d)
It can lead to financial trouble if misused.
19.
What is an advantage to using checks?
a)
They are quick and easy to write.
b)
They are safe to mail.
c)
They are accepted everywhere.
d)
You can buy something even if you don't  have the money to pay for it.
20.

A number required when a person uses a debit card; it ensures others can’t access the bank account

a)

ATM

b)

Credit Card

c)

PIN (Personal Identification Number)

d)

Debit Card

21.

Card that allows you to spend only the amount you have pre-depositded into an account

a)

Debit Card

b)

Prepaid Card

c)

Credit Card

d)

Gift Card

22.

A card that is purchased for a certain amount and then used like cash

a)

Gift Card

b)

Credit Card

c)

Debit Card

d)

Prepaid Card

23.

Payment made online (or app) that allows the user to automatically debit a bank account or charge credit

a)

Prepaid Check

b)

Direct Deposit

c)

PIN (Personal Identification Number)

d)

Electronic Payment

24.

A card that allows the holder to buy goods/services by taking out a bank loan

a)

Prepaid Card

b)

Gift Card

c)

Debit Card

d)

Credit Card

25.

Card that allows customers to electronically and immediately withdraw funds from their accounts in cash, purchased goods or services

a)

Credit Card

b)

Debit Card

c)

Prepaid Card

d)

Gift Card

26.

a written record of money put into a checking account

a)

Check

b)

Deposit Ticket

c)

Electronic Transfer

d)

Direct Deposit

27.

a tool for recording money (deposited) or (withdrawn) from an account

a)

Debit Card

b)

ATM (Automatic Teller Machine)

c)

Money Tracker

d)

Prepaid Account

28.

The freedom to act in a certain way

a)

Citizen

b)

Right

c)

Responsibility

d)

Good Samaritan

29.

Which of the following are financial institutions? Choose all that apply.

a)

bank

b)

library

c)

credit union

d)

museum

30.

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

a)

True

b)

False

31.

A machine that allows bank customers to deposit or withdraw money without visiting their bank.

a)

ATM

b)

Check

c)

Loan

d)

Safe deposit box

32.

A check that is written for more than the amount of money in a checking account.

a)

Deposit ticket

b)

Credit card

c)

Bounced check

d)

Paycheck

33.

To write a signature on the back of a check.

a)

Endorse

b)

Income

c)

Accrue

d)

Interest

34.

Putting money into an account.

a)

deposit

b)

withdrawal

35.

Removing money from an account.

a)

deposit

b)

withdrawal

36.

The money people earn for their work.

a)

income

b)

endorse

c)

accrue

d)

interest

37.

The money people earn for their work.

a)

income

b)

endorse

c)

accrue

d)

interest

38.

The current amount of money in an account.

a)

bank

b)

balance

c)

savings account

d)

checking account

39.

A business that offers money-related services to its customers, including loans and checking and savings accounts.

a)

bank

b)

store

c)

business

d)

economy

40.

A company that sells goods or services.

a)

bank

b)

credit union

c)

online bank

d)

business

41.

A written order to a bank to pay a certain amount of money from a checking account to another person or business.

a)

check

b)

credit card

c)

loan

d)

debit card

42.

A bank account used to pay bills and access funds using checks and debit cards.

a)

savings account

b)

taxes

c)

credit card

d)

checking account

43.

A financial institution owned by its members that provides many of the same services as a bank.

a)

online bank

b)

ATM

c)

credit union

d)

savings and loan

44.

A card that allows customers to electronically and immediately withdraw funds from their accounts, either in cash or to purchase goods or services.

a)

debit card

b)

credit card

c)

check

d)

ATM

45.

Money borrowed that must be repaid, usually with interest.

a)

savings account

b)

checking account

c)

loan

d)

check

46.

A service that allows customers to perform banking activities using the Internet.

a)

ATM

b)

online banking

c)

Google

d)

credit union

47.

A bank safe where documents, jewelry, or other valuables are kept.

a)

savings account

b)

checking account

c)

safe deposit box

d)

ATM

48.

An account that usually earns interest and is often used to hold money that is not needed right away.

a)

savings account

b)

checking account

c)

credit union

d)

savings and loan

49.

A business agreement or exchange.

a)

paycheck

b)

transaction

c)

deposit

d)

loan

50.

The chief financial officer responsible for a business's finances

a)

CEO

b)

CFO

c)

Account Manager

d)

employee

51.

A booklet for recording money put into (deposited) or removed (withdrawn) from an account

a)

credit card

b)

savings and loan

c)

check register

d)

balance

52.

A written record of money put into a checking account

a)

check

b)

check register

c)

balance

d)

deposit ticket

53.

The amount of money placed into an account after all deductions, such as cash back, are made.

a)

net deposit

b)

deposit ticket

c)

checking account

d)

paycheck

54.

A check received for work completed

a)

deposit

b)

paycheck

c)

checking account

d)

check register

55.

A fee received or paid for the use of money

a)

loan

b)

interest

c)

check

d)

paycheck