Free Printable Unit 6 Test: Financial Literacy

Worksheets

Unit 6 Test: Financial Literacy

Total questions: 25

Worksheet time: 13mins

Name

Class

Date

Sarah earns $3,200 per month. She spends $1,200 on rent, $400 on groceries, $200 on utilities, and $300 on transportation. How much money does she have left for savings and other expenses?

$1,100

$1,400

$2,100

$900

If you budget $500 for entertainment and actually spend $650, what is the difference?

$150

$50

$100

$200

Your monthly income is $4,000, and your fixed expenses are $2,500. If you want to save 20% of your income, how much can you spend on discretionary expenses?

$800

$1,000

$1,200

$1,500

A person earns $50,000 annually and spends 30% of their income on housing. How much is spent on housing per year?

$25,000

$15,000

$20,000

$10,000

If your total expenses equal your total income, what is your budget status?

Variable

Balanced

Deficit

Surplus

What is the definition of a asset?

An asset is a resource owned by an individual or entity that is expected to provide future economic benefits.

An asset is a liability that decreases in value over time.

An asset is a type of debt that must be repaid.

An asset is a temporary resource that has no economic value.

What does net income refer to?

The amount you make before taxes

The total amount deposited into your account

Your income after taxes and deductions

Your employer's profit

What is bankruptcy?

Bankruptcy is a type of investment strategy.

Bankruptcy is a method of increasing wealth.

Bankruptcy is a financial term for profit maximization.

Bankruptcy is a legal status of a person or entity that cannot repay the debts it owes.

What is the primary purpose of a checking account?

The primary purpose of a checking account is to manage daily financial transactions.

To save money for long-term investments.

To provide loans to customers.

To earn high interest on deposits.

10.

Which of the following is NOT typically a feature of a savings account?

Interest earned on deposit

Limited withdrawals per month

High transactions activity like a checking account

A place to store money securely

11.

What does FDIC insurance protect consumers from?

Identity Theft

Losing money if a bank fails (up to the insured limit)

Fraudulent credit card transactions

Investment losses

12.

What information should you include when writing a check?

Date, payee name, amount only

Recipient address, payment method, transaction ID

Signature, memo, bank account number

Date, payee name, amount (numbers and words), signature, memo (optional)

13.

What is the memo line on a check used for?

To specify the reason for the check payment

To provide the payee's address.

To list the check number.

To specify the date of the transaction.

14.

If you write a check for more money than you have in your account, what happens?

You will receive a bonus for writing a check.

The bank will automatically cover the difference.

The check will be processed without any issues.

The check will bounce, and you may incur fees.

15.

What should you do before signing a check?

Make sure all fields are filled out correctly

Leave the amount blank

Write in pencil

Sign first and then fill out the details

16.

If a check has VOID written across it, what does it mean?

It means the check is still valid and can be cashed.

It indicates that the check is a duplicate.

It means the check is invalid and cannot be cashed or deposited.

It signifies that the check is a gift or donation.

17.

What is the typical credit score range in the U.S.?

100 to 500

400 to 900

250 to 700

300 to 850

18.

Which factor has the biggest impact on your credit score?

Credit utilization

Length of credit history

Types of credit accounts

Payment history

19.

What happens if you make a late credit card payment?

You will receive a refund for your last payment.

Your credit limit will automatically increase.

Your account will be closed immediately.

Making a late credit card payment can result in late fees, higher interest rates, and damage to your credit score.

20.

How can you improve your credit score?

Ignore credit card balances

Pay bills on time, reduce debt, avoid new credit accounts, check for errors.

Open multiple credit accounts at once

Make late payments regularly

21.

What is a good credit score typically considered?

Below 500

500 - 600

700+

850+

22.

Which of the following does not affect your credit score?

Credit utilization

Length of credit history

Personal information such as age or gender

Payment history

23.

What happens if you max out your credit card?

All your debts will be forgiven.

Your credit limit will increase automatically.

You may face declined transactions, increased interest rates, and damage to your credit score.

Unit 6 Test: Financial Literacy

Total questions: 25

Worksheet time: 13mins

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