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Multiple Choice Test - Financial Literacy & Economics Vocabulary

Total questions: 29

Worksheet time: 15mins

Name
Class
Date
1.

What does “limited” mean?

a)

You can have everything you want

b)

You can’t have everything

c)

You can only buy what others buy

d)

You always have extra money

2.

Opportunity cost is:

a)

The money you save every week

b)

What you give up to get something else

c)

A job you want in the future

d)

A list of long-term goals

3.

A goal is:

a)

Something you want to achieve

b)

A list of things you cannot do

c)

Something you already have

d)

A type of savings plan

4.

A need is:

a)

Something you would like to have

b)

Something you must have to live

c)

Something you borrow

d)

A type of wage

5.

A want is:

a)

Something required for survival

b)

Something you would like to have

c)

Something you cannot buy

d)

Something only adults have

6.

Prioritizing means:

a)

Borrowing money

b)

Paying bills

c)

Putting things in order of importance

d)

Making a budget

7.

A budget is:

a)

A record of your credit history

b)

A plan for using your money over time

c)

A type of bank account

d)

A list of wants

8.

Tracking your spending means:

a)

Planning future goals

b)

Looking at how you earn money

c)

Looking at what you’ve done with your money so far

d)

Asking a bank for a loan

9.

A Hover-38 is a:

a)

Type of salary

b)

Hover bike

c)

Tax form

d)

Kind of bank account

10.

A wage is:

a)

Money you save for emergencies

b)

Money you get paid for each hour of work

11.

A salary is:

a)

Money paid the same each pay period no matter the hours

b)

Money earned only on weekends

c)

Money earned from selling stocks

d)

Money made from interest

12.

12. Taxes are:

a)

Money paid to friends

b)

Money that goes to the government

c)

Money you always get back

d)

Money paid only by businesses

13.

Gross income is:

a)

The money left after taxes

b)

The money you borrow

c)

The full amount you earn before taxes

d)

The amount you save

14.

Net income is:

a)

The money left after taxes

b)

The full amount earned

c)

Money borrowed from a bank

d)

Money added to your savings

15.

A job is:

a)

Something you do to earn money

b)

A long-term occupation requiring training

c)

A type of tax

d)

A type of bank account

16.

A career is:

a)

A short-term task

b)

A hobby

c)

An occupation you train for and follow as your life’s work

d)

Money borrowed from a lender

17.

Credit is:

a)

Saving money

b)

Borrowing money and promising to pay it back

c)

Money you earn from a wage

d)

Paying taxes

18.

A credit card is:

a)

A way to buy something using credit

b)

A savings tool

c)

A tax payment method

d)

A paycheck

19.

Debt is:

a)

The money you have left after taxes

b)

The money you have borrowed and must pay back

c)

Money saved for later

d)

A type of wage

20.

Credit history is:

a)

A record of how you borrow and repay money

b)

A list of jobs you’ve had

21.

If someone is reliable, they:

a)

Save money

b)

Borrow money often

c)

Can be trusted

d)

Are wealthy

22.

A savings account is used for:

a)

Short-term saving

b)

Paying taxes

c)

Long-term borrowing

d)

Tracking credit history

23.

Interest is:

a)

An added bonus you receive

b)

Money you hide at home

c)

Money you lose each day

d)

The amount a bank pays you or the amount you pay when borrowing

24.

Simple interest is:

a)

When you earn interest on interest

b)

When you make a dollar for every $10

c)

A type of tax

d)

A type of wage

25.

Compound interest is:

a)

When interest grows on the original amount plus past interest

b)

When you make the same amount each week

c)

When you borrow money from a friend

d)

When savings stay the same

26.

Insurance helps you pay for:

a)

Vacations

b)

Emergencies

c)

Wants

d)

Taxes

27.

A Certificate of Deposit (CD) is:

a)

A short-term savings account

b)

A medium-term savings account that earns higher interest

c)

A credit card

d)

A type of debt

28.

Bonds are:

a)

Agreements where you lend money to companies or the government

b)

A short-term savings account

c)

A type of tax

d)

A record of credit history

29.

Stocks are:

a)

A type of loan

b)

A share of ownership in a company

c)

A type of insurance

d)

A type of wage