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WorksheetsFinancial Literacy Exam
Total questions: 33
Worksheet time: 16mins
What is a credit score?
A number that represents how much money a borrower owes.
An average of all of a borrower's credit accounts.
A score from a test given to borrowers by lenders.
A number that represents the risk a lender takes on a borrower.
What is interest?
The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.
The fee that is paid to borrow money.
The non-interest portion of a loan.
The rate lenders charge borrowers for money.
What is a credit card?
The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.
The non-interest portion of a loan.
A card issued by a bank or business, allowing borrowers to purchase goods and services on credit.
The fee that is paid to borrow money.
Credit allows you to?
Purchase an item right now and pay for it right now.
Receive an item right now and never pay for it.
Pay for an item right now, but receive it later.
Purchase an item right now and pay for it later.
What is the total amount of debt this person owes?
$20,475
$7,351
$13,124
$5,773
What is the definition of a "want"?
Something you need to survive.
Something you would like to have.
Something that is necessary for you to survive.
Something that is important for you to have.
An account that allows you to save money, as well as make deposits and make withdrawals.
Checking
Money Market
Savings
Certificate of Deposit
How many hours did this employee work during this pay period?
08
80
72
40
What is this employee's gross pay for this pay period?
$1,280
$972.67
$872.53
$7,680
James earns 10% of every sale he makes. This is an example of:
Salary
Wages
Commission
Assets
Using this graph, which budget item has the largest allowance?
Dining out
Debt Repayment
Housing
Groceries
An account that allows you easy access to your money and allows the use of checks and debit cards.
Money Market
Savings
Certificate of Deposit
Checking
Wages, salary and commission are examples of what type of income?
Portfolio
Earned
Passive
What is a 'Credit Score'?
The maximum amount of credit a borrower can use
A yearly charge for credit card usage
A measurement of someone's creditworthiness
An initial cash payment for a large purchase
Simone is dreaming of cruising down the highway in a shiny new car. But first, she needs to impress the bank with her 'Credit Score'. What exactly is this magical number that the bank will consider?
The maximum amount of credit a borrower can use
A yearly charge for credit card usage
A measurement of someone's creditworthiness
An initial cash payment for a large purchase
What is the primary purpose of a savings account?
To allow unlimited withdrawals
To pay bills automatically
To earn interest on deposited funds
To provide a line of credit
Which of the following is considered a fixed expense?
Groceries
Clothing
Rent
Entertainment
What is the main advantage of using a credit card responsibly?
Spending beyond your means
Accumulating debt
Building a good credit history
Paying high interest rates
What is a source of money you make?
Mortgage
Rent
Insurance
Wage
Which is true about a personal budget?
A budget is not helpful.
A budget does not need to be done every month.
A budget helps decide how to spend and save your money.
What is a need?
An item you would like to have.
An item you have to have to survive.
What is a want?
An item you would like to have.
An item you have to have to survive.
Money borrowed from a bank.
debt
budget
loan
expense
A mortgage is a loan for...
a car
college
a house
Debt can be good and bad.
True
False
What does a credit score measure?
Creditworthiness
Monthly expenses
Credit card limit
Annual income
What is the primary purpose of a budget?
Tracking income and expenses
Increasing debt
Avoiding savings
Ignoring financial goals
A person or organization who makes funds available to
borrow.
Lender
Credit History
Credit Report
Closed‐end Credit
Maintaining a reasonable amount of unused credit will create
Negative Credit
Positive credit
Routinely paying bills late will create
Negative Credit
Positive credit
FICO crunches the numbers from credit reports of the three credit bureaus.
True
False
The five factors that affect credit scores are: payment history, length of credit history, credit utilization, new credit, and credit mix.
True
False
Opening up many credit lines suggests you are in financial trouble by needing significant access to lots of credit.
True
False
