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Financial Literacy Quiz

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

What is the main focus of money management?

a)

Planning how to get the most from your money

b)

Spending money quickly

c)

Avoiding all expenses

d)

Ignoring financial records

2.

What type of document is included in organizing personal financial documents?

a)

Car title

b)

Movie tickets

c)

Restaurant menus

d)

Travel brochures

3.

What is one of the benefits of using a Personal Financial Statement?

a)

It helps you measure your progress toward financial goals.

b)

It provides a detailed history of your family tree.

c)

It lists all the books you have read.

d)

It tracks your daily exercise routine.

4.

What is the primary focus of a Personal Financial Statement?

a)

Current financial position

b)

Future career goals

c)

Past educational achievements

d)

Daily exercise routine

5.

Which of the following is considered an asset?

a)

Owned Car

b)

Borrowed books

c)

Rented apartment

d)

Leased car

6.

Which of the following is an example of an asset in the form of investments?

a)

Stocks

b)

Borrowed money

c)

Rented tools

d)

Leased vehicles

7.

What is the main difference between current and long-term liabilities?

a)

Current liabilities are assets

b)

Long-term liabilities are paid within a year

c)

Current liabilities are paid within a year

d)

Long-term liabilities are never paid

8.

Which of the following is a characteristic of long-term liabilities?

a)

Must be paid immediately

b)

Do not have to be fully repaid for at least a year

c)

Are always forgiven

d)

Increase in value over time

9.

Which of the following is NOT an example of a current liability?

a)

Credit card bills

b)

Car loans

c)

Most medical bills

d)

Taxes

10.

What is a possible consequence if you spend ALL your savings to buy a house?

a)

Increase in net worth

b)

Insolvency

c)

Increase in liabilities

d)

Decrease in assets

11.

What does insolvency prevent you from doing?

a)

Increasing savings

b)

Paying all your debts/bills

c)

Reducing liabilities

d)

Buying more assets

12.

What is discretionary income?

a)

Income before taxes

b)

Total income earned

c)

Income after necessary expenses

d)

Income saved for retirement

13.

What does 'cash flow' refer to?

a)

The total amount of money saved

b)

The movement of money in and out of accounts

c)

The amount of money spent on luxury items

d)

The total income earned annually

14.

Which of the following is NOT a benefit of organizing financial documents?

a)

Handle routine money matters

b)

Make effective saving decisions

c)

Increase physical fitness

d)

Determine future financial status

15.

Where can you rent a safe deposit box?

a)

From a bank

b)

From a library

c)

From a grocery store

d)

From a school

16.

Which of the following is NOT a recommended place to keep financial documents?

a)

On a kitchen counter

b)

In a filing cabinet

c)

In a safe

d)

In a safe deposit box

17.

What is a potential risk of not having an emergency fund?

a)

Financial instability during unexpected events

b)

More investment opportunities

c)

Higher interest rates on loans

d)

Increased savings

18.

Which of the following is a benefit of budgeting?

a)

Unlimited spending

b)

Better control over finances

c)

Increased debt

d)

Reduced income