WorksheetsFinancial Literacy Review
Total questions: 25
Worksheet time: 25mins
Which of the following helps make it easier to save?
Having a goal in mind.
Putting away a little money at a time.
Buying the cheapest version of an item.
Creating a budget and plan.
If I spend $80 on new shoes, what is a possible opportunity cost?
I will have to wear those shoes every day.
What is opportunity cost??
I won't have $80 to spend on something else.
I should have compared prices.
The original amount of money invested in an account is ____________.
always an even number
gross income
the principal
a personal question
To keep money so it can be used later
spend
borrow
deposit
save
To use money to buy a good or service
borrow
lend
save
spend
Which of the following is a benefit of creating a personal budget?
A) It helps track expenses and savings.
B) It guarantees financial success.
C) It eliminates all financial risks.
D) It increases your income automatically.
What is the primary purpose of a savings account?
A) To earn interest on deposited money.
B) To provide loans to others.
C) To avoid paying taxes.
D) To invest in the stock market.
Which of the following is considered a fixed expense?
A) Monthly rent payment.
B) Grocery shopping.
C) Entertainment costs.
D) Dining out expenses.
What does the term 'interest rate' refer to in finance?
A) The cost of borrowing money.
B) The amount of money saved.
C) The total amount of a loan.
D) The principal amount of an investment.
Which financial product is typically used for retirement savings?
A) 401(k) plan.
B) Checking account.
C) Credit card.
D) Personal loan.
What is the main advantage of using a credit card responsibly?
A) Building a good credit history.
B) Avoiding all types of debt.
C) Earning unlimited rewards.
D) Eliminating the need for a budget.
Which of the following is an example of a variable expense?
A) Utility bills.
B) Mortgage payment.
C) Car insurance premium.
D) Internet subscription.
What is the purpose of an emergency fund?
A) To cover unexpected expenses.
B) To invest in high-risk stocks.
C) To pay off long-term debt.
D) To fund a vacation.
Which of the following is a characteristic of a good financial goal?
A) It is specific and measurable.
B) It is vague and open-ended.
C) It is based on luck.
D) It is impossible to achieve.
What is the role of a financial advisor?
A) To provide guidance on managing finances.
B) To sell insurance policies.
C) To approve bank loans.
D) To audit financial statements.
Which of the following is a benefit of investing in a diversified portfolio?
A) Reducing investment risk.
B) Guaranteeing high returns.
C) Avoiding all market fluctuations.
D) Eliminating the need for savings.
What is the main purpose of a credit report?
A) To assess an individual's creditworthiness.
B) To calculate annual income.
C) To determine tax liabilities.
D) To track spending habits.
Which of the following is a common feature of a checking account?
A) Ability to write checks.
B) High interest rates.
C) Long-term investment.
D) Penalty for early withdrawal.
What is the significance of a credit score?
A) It affects the ability to obtain loans.
B) It determines annual salary.
C) It predicts future wealth.
D) It measures financial literacy.
Which of the following is a strategy to improve financial literacy?
A) Attending financial education workshops.
B) Ignoring financial news.
C) Relying solely on credit cards.
D) Avoiding budgeting.
What is the primary function of insurance?
A) To provide financial protection against risks.
B) To increase personal wealth.
C) To eliminate all financial losses.
D) To guarantee investment returns.
Which of the following is a benefit of setting a financial plan?
A) It helps achieve financial goals.
B) It guarantees wealth.
C) It eliminates all debts.
D) It increases spending power.
What is the purpose of a loan agreement?
A) To outline the terms of borrowing money.
B) To provide investment advice.
C) To calculate interest rates.
D) To determine credit scores.
Which of the following is a key component of financial literacy?
A) Understanding how to manage money effectively.
B) Knowing how to win the lottery.
C) Avoiding all forms of credit.
D) Spending without a budget.
What is the main advantage of having a diversified investment portfolio?
A) It spreads risk across different assets.
B) It guarantees high returns.
C) It eliminates the need for savings.
D) It focuses on a single asset class.
