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FinanceSAYA: The Playful Path to Financial Literacy

Total questions: 10

Worksheet time: 2mins

Name
Class
Date
1.

What does inflation do to your purchasing power?

a)

Increases it

b)

Keeps it the same

c)

Reduces it

d)

Has no effect

2.

Which of the following is usually considered not a good “investment”?

a)

Stocks

b)

Mutual funds

c)

Real estate investment trust (REIT)

d)

A new car used for commuting

3.

Diversifying your investments means:

a)

Putting all money into one stock

b)

Spreading investments across different asset types

c)

Investing only in real estate

d)

Avoiding all risk entirely

4.

Which of the following historically has had the highest rate of return over long periods?

a)

Savings accounts

b)

Bonds

c)

Stocks

d)

Keeping cash under the mattress

5.

What is an emergency fund recommended to cover?

a)

One week’s expenses

b)

Three to six months’ worth of expenses

c)

Ten years of expenses

d)

Only your vacation cost

6.

What is the “time value of money”?

a)

Money’s value remains constant over time

b)

A peso today is worth more than the same peso in the future

c)

Future money is always worth more

d)

Money loses value only if spent

7.

What is “liquidity”?

a)

Being able to drink your savings

b)

How quickly assets can be converted into cash without big loss

c)

The total value of your assets

d)

The number of investments you own

8.

What does “inflation rate” indicate?

a)

Rate at which your savings grow

b)

Rate at which general price levels rise

c)

Rate at which your salary drops

d)

Rate at which debt increases

9.

What is a “mutual fund”?

a)

A fund you share with family

b)

A savings account

c)

A loan to a company

d)

A pooled investment managed by professionals

10.

Which of the following is a benefit of starting to save early for retirement?

a)

Less compounding

b)

You need to save less overall

c)

Retirement will be closer

d)

More time for money to grow