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Financial Literacy Quiz

Total questions: 18

Worksheet time: 52mins

Name
Class
Date
1.

What does ATM stand for?

a)

Automated Teller Machine

b)

Automatic Transaction Medium

c)

Automated Transaction Module

d)

Automatic Teller Medium

2.

What is a budget?

a)

A plan for spending and saving money

b)

A type of financial investment

c)

A document listing debts

d)

A record of past transactions

3.

What is the purpose of a checking account?

a)

To save money for long-term goals

b)

To invest in the stock market

c)

To facilitate daily financial transactions

d)

To lock money for a fixed period at a fixed interest rate

4.

What is a credit card?

a)

A form of digital currency

b)

A plastic card that allows you to borrow money from a bank to make purchases

c)

A tool for unlocking doors

d)

A type of identification card

5.

What does a credit score represent?

a)

A person's financial stability

b)

A numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual

c)

A person's yearly income

d)

A record of a person's criminal history

6.

What is the difference between a debit card and a credit card?

a)

A debit card allows you to spend money by drawing on funds you have deposited at the bank.

b)

A credit card gives you a line of credit that you can spend and pay back over time.

c)

A debit card and a credit card are the same.

d)

Both cards directly withdraw money from your checking account.

7.

What is a deposit?

a)

A sum of money placed or kept in a bank account, usually to gain interest.

b)

A payment made to a professional person or to a professional or public body in exchange for advice.

c)

A sum payable as a first installment on the purchase of something or as a pledge for a contract, the balance being payable later.

d)

The action of withdrawing money from an account.

8.

What is discretionary expense?

a)

Money spent on essential goods and services

b)

Money spent on non-essential goods and services

c)

A fixed expense that cannot be adjusted

d)

A type of investment

9.

What is FAFSA an abbreviation for?

a)

Federal Application For Student Aid

b)

Free Application For Student Aid

c)

Federal Aid For Students Application

d)

Free Aid For Students Application

10.

What is a fixed expense?

a)

A cost that does not change with an increase or decrease in the amount of goods or services produced or consumed

b)

A cost that changes with the level of output or sales

c)

The total amount of money being transferred into and out of a business

d)

A financial obligation payable to a creditor

11.

What is income?

a)

The money received, especially on a regular basis, for work or through investments.

b)

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

c)

A sum of money saved or made available for a particular purpose.

d)

The action or process of investing money for profit.

12.

When budgeting, what is a need?

a)

A luxury item

b)

An essential expense for living

c)

A one-time purchase

d)

An optional expense

13.

What does opportunity cost refer to?

a)

The cost of choosing one alternative over another

b)

The total cost of production

c)

The cost of not taking any action

d)

The cost of resources used in production

14.

What is a salary?

a)

A monthly payment for services rendered

b)

A type of savings account

c)

A loan given to employees

d)

A reward for completing a task

15.

What is the purpose of a savings account?

a)

To borrow money

b)

To save money for future use

c)

To invest in stocks

d)

To pay daily expenses

16.

What is stock?

a)

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings

b)

A financial strategy involving the exchange of currency

c)

A document representing a loan made by an investor to a borrower

d)

A type of precious metal investment

17.

What is a wage?

a)

A form of payment to employees for their labor

b)

A type of loan

c)

A tax imposed by the government

d)

A business profit

18.

When budgeting, what is a want?

a)

An essential expense for living

b)

A non-essential expense

c)

A fixed expense

d)

A variable expense