WorksheetsFinancial Literacy Quiz
Total questions: 27
Worksheet time: 14mins
What is a financial goal?
A written plan that identifies financial goals and outlines specific actions needed to meet those goals
An objective that a person sets that affects how they spend or save money
An individual's total earnings from pay and/or other sources, before taxes or other deductions
An estimate or plan to manage income and expenses over a set period
What is a financial plan?
An individual's total earnings from pay and/or other sources, minus income tax and other deductions
A budget in which income is equal to or greater than expenses
A written plan that identifies financial goals and outlines specific actions needed to meet those goals
Things that do not cost the same every month
What does gross income refer to?
An individual's total earnings from pay and/or other sources, before taxes or other deductions
An estimate or plan to manage income and expenses over a set period
Paying money to get goods and services
Things that cost the same every month
What is net income?
An individual's total earnings from pay and/or other sources, before taxes or other deductions
An individual's total earnings from pay and/or other sources, minus income tax and other deductions
A budget in which income is equal to or greater than expenses
Things that do not cost the same every month
What is a balanced budget?
A budget in which income is equal to or greater than expenses
An estimate or plan to manage income and expenses over a set period
An individual's total earnings from pay and/or other sources, before taxes or other deductions
Things that cost the same every month
What are fixed expenses?
Things that do not cost the same every month
Things that cost the same every month
An estimate or plan to manage income and expenses over a set period
An individual's total earnings from pay and/or other sources, minus income tax and other deductions
What is the purpose of budgeting tools like Excel spreadsheets and Google Sheets?
To track spending and saving
To calculate taxes
To invest in stocks
To manage employee payroll
What does the interest rate represent?
The total amount of money borrowed
The percentage or decimal value of interest charged or earned on the principal
The future value of an investment
The monthly payment on a loan
What is the principal amount?
The total interest paid over a loan period
The initial amount of money borrowed or invested
The monthly payment on a loan
The total amount of money saved in a year
What is simple interest?
Interest calculated on the initial principal only
Interest calculated on both the principal and accumulated interest
Interest that changes monthly
Interest that is paid upfront
What is an investment?
A loan taken from a bank
An asset purchased with the expectation of generating income or profit
A type of insurance policy
A government bond
What does borrowing typically involve?
Receiving money with no obligation to repay
Receiving money with an agreement to repay in the future, usually with interest
Giving money to a friend
Investing in the stock market
What is a customer loyalty/rewards program?
A program that charges extra fees to loyal customers
An incentive program that rewards loyal consumers with discounts or points
A program that increases the price of products for frequent buyers
A program that offers free products to new customers only
What is an incentive in a business context?
A penalty for late payments
A reward offered by a company to encourage consumers to buy or use its products/services
A mandatory fee for using a service
A tax deduction for businesses
What is a pro of using cryptocurrency?
Transactions are completely anonymous
Accepted almost everywhere
Speed and convenience
No reward points
What is a con of using wire transfers?
Can be lost or destroyed
Price volatility
Not accepted everywhere
Non-reversible
Which payment method is described as having speed and convenience for buying online?
Cryptocurrency
Wire Transfer
E-Transfer
Debit card
What is a disadvantage of using a credit card?
No reward points
Can be inconvenient to carry
Doesn't help your credit score
Subject to great gains and declines in value
Which payment method is known for being fast and sent in real time?
Cryptocurrency
Wire Transfer
E-Transfer
Credit card
What are three examples of Income/Earnings?
Salary, Commission, Interest earned from investments
Rent, Dividends, Gifts
Loans, Donations, Grants
Scholarships, Prizes, Coupons
What are the steps to creating a budget?
Set your goal, Set your time frame, Calculate your income, Estimate and calculate your expenses
Choose a bank, Open an account, Deposit money, Withdraw funds
Find a job, Earn money, Spend wisely, Save the rest
Identify needs, Make a list, Shop, Pay bills
What are 2-3 examples of what interest rates impact?
Savings, Investments, Borrowing
Shopping, Dining, Traveling
Entertainment, Leisure, Sports
Education, Health, Fitness
What is the formula for Simple Interest?
I = (P + R + T)
I = (P)(R)(T)
I = (P)(R)/(T)
I = (P)(T)/(R)
Maya takes a loan of $20,000 from a bank at a simple interest rate of 10% per annum. If she repays the loan after 2 years, how much total money does she pay back?
$2,000
$22,000
$24,000
$4,000
If the simple interest on $8,000 at an annual rate of 7% is $1,680, find the period for which the amount was invested.
2 years
3 years
4 years
5 years
If the simple interest on $7,500 for 6 years is $2,700, what is the rate of interest?
4%
5%
6%
7%
If the interest rate doubles from 6%, how much interest would be earned on $7,500 for 6 years?
$2,700
$5,400
$4,500
$3,600
