Quiz about Financial Literacy Vocabulary

Question 1

Amanda has to pay taxes on her annual salary and investments. Which type of tax is Kimberly paying?

Accepted Answer

Income Tax

Answer

Sales Tax

Answer

Property Tax

Answer

Payroll Tac

Question 2

Which of the following is an advantage of using a credit card?

Accepted Answer

Consumers can purchase things now, and pay for them later in the event of an emergency.

Answer

Interest is charged for the use of a credit card.

Answer

You could be a victim of identity theft.

Question 3

Which of the following is considered an advantage to using a debit card to make purchases?

Accepted Answer

All of the above.

Answer

Debit cards are convenient and easy to carry around.

Answer

Purchases can be made quickly and easily.

Answer

You can use many ATMs to get cash.

Question 4

The money earned for working and money received for the sale of goods or property is _________.

Accepted Answer

income

Answer

credit

Answer

demand

Question 5

Charitable giving is...

Accepted Answer

donating to an organization that collects money, goods, or services to groups in need

Answer

purchasing goods and services to satisfy wants and needs

Answer

abilities that people use (such as their creativity or social skills) to produce something and make moeny

Question 6

Credit is...

Accepted Answer

buying or obtaining goods or services now with an agreement to pay in the future.

Answer

how much people want a certain good or service.

Answer

setting aside money earned or received for future use.

Question 7

"Money paid for borrowing money or making purchases on credit" is _________.

Accepted Answer

interest paid

Answer

income

Answer

scarcity

Question 8

What is a savings plan?

Accepted Answer

a plan to set money aside for future use

Answer

money paid for borrowing money or making purchases on credit

Answer

donating to an organization that collects money, goods, or services to groups in need

Question 9

"Setting aside money earned or received for future use" is _________.

Accepted Answer

saving

Answer

spending

Answer

credit

Question 10

What does a bank do for you?

Accepted Answer

Keep your money safe while allowing you access to it

Answer

Charge you interest on the money they keep for you

Answer

Shine your shoes

Answer

Give you money when you ask politely

Question 11

Putting money into a bank is called

Accepted Answer

deposit

Answer

withdrawal

Answer

interest

Answer

cashier's check

Question 12

A bank can charge a fee for

Accepted Answer

All of the above

Answer

withdrawing money in certain ways

Answer

overdrafts

Answer

filing loan papers for a mortgage

Question 13

A mortgage is a loan for

Accepted Answer

real estate

Answer

a car

Answer

a college education

Answer

a business plan

Question 14

Being on a budget means:

Accepted Answer

You made a plan of your expenses to be less than or equal to your income

Answer

You pay bills every month at the due date

Answer

You are earning enough money to be able to live well

Answer

Your bills are generally paid by every due date

Question 15

Something that you pay is called....

Accepted Answer

an expense

Answer

income

Answer

a profit

Answer

savings

Question 16

Interest is:

Accepted Answer

The amount owed for borrowing money

Answer

A charge for lending money to a bank

Answer

the amount added into your savings when opening a bank account

Answer

a charge for the convenience of accessing money stored in your bank account

Question 17

Sandra is paying $157.00 every month for 2 years. What is her repayment total?

Accepted Answer

$3,768

Answer

$3,140

Answer

$314

Answer

None of the above.

Question 18

Sales tax is __________ to the price

Accepted Answer

added

Answer

subtracted

Answer

multiplied

Answer

divided

Question 19

A key difference between saving and investing is

Accepted Answer

Saving is for emergencies & goals, investing is for long-term wealth

Answer

Saving is for everyone, investing is for the wealthy

Answer

Your money is insured when investing, it is not in savings

Answer

Investing has a guaranteed return, savings does not

Question 20

Interest and fees is the way...

Accepted Answer

All of the above

Answer

Credit Card Companies make their money

Answer

Banks make their money

Answer

Store cards make their money

Question 21

Which one is not a benefit of a credit card?

Accepted Answer

Interest

Answer

Rewards

Answer

Cash back

Answer

Travel Points

Question 22

What type of loan is a credit card?

Accepted Answer

Short Term

Answer

Long Term

Answer

Free term

Question 23

You borrowed money through a federal program to pay for your education this year.

Accepted Answer

Loan

Answer

A scholarship

Answer

A grant

Answer

Work Study

Question 24

You were a high school athlete. The university is paying your tuition while you play on the

college team.

Accepted Answer

A scholarship

Answer

A grant

Answer

Work Study

Answer

Loan

Question 25

Your parents borrowed money through a U.S. government program for parents of college

students.

Accepted Answer

Loan

Answer

A scholarship

Answer

A grant

Answer

Work Study

Question 26

You work 20 hours per week in the library at your college.

Accepted Answer

Work Study

Answer

A scholarship

Answer

A grant

Answer

Loan

Question 27

Money you receive for school that does not have to be paid back. Select all that apply.

Accepted Answer

Scholarships

Accepted Answer

Grants

Answer

Federal Student Loans

Answer

Private Student Loans

Question 28

All of the following are costs of going to college EXCEPT...

Accepted Answer

Scholarships and grants

Answer

Tuition and fees

Answer

Room and board

Answer

Textbooks

Question 29

Which card immediately removes money from your checking account?

Accepted Answer

debit card

Answer

savings card

Answer

checking card

Answer

credit card

Question 30

Someone who loans money is a ___________________.

Accepted Answer

lender

Answer

borrower

Answer

creditor

Answer

good person

Question 31

When you write a check from your checking account this is a:

Accepted Answer

Debit subtracted from your balance

Answer

Credit added to your balance.

Answer

Credit subtracted from your balance.

Answer

Debit added to your balance.

Question 32

Katie wants to purchase a camera that costs $149.99.  She has $435.00 in her checking account.  Which statement is true if Katie uses a debit card to pay for the membership?

Accepted Answer

She will not have to pay a fee because she has enough money in her account.

Answer

She will have to pay interest on the amount she borrows.

Answer

She will have to pay a penalty fee because she does not have enough money in her account.

Answer

She will have to make payments on the amount she borrows.

Question 33

James's initial balance in his checking account was $800.  He withdrew $200 and then deposited $164.  James made another transaction that brings his balance to $750.  What was the transaction?

Accepted Answer

a withdrawal of $14

Answer

a deposit $314

Answer

a withdrawal of $414

Answer

a deposit of $50

Question 34

What is a similarity between debit and credit cards?

Accepted Answer

Both are small and made of plastic.

Answer

Both require you to use a PIN #

Answer

Both are paid when the bill arrives.

Answer

Both charge interest fees on unpaid balances.

Question 35

Donnie puts his payroll check into the bank.

Accepted Answer

Deposit

Answer

Withdrawal

Question 36

Katie buys donuts for breakfast.

Accepted Answer

Withdrawal

Answer

Deposit

Question 37

Jasmine pays her rent on October 1st.

Accepted Answer

Withdrawal

Answer

Deposit

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