Financial Literacy Quiz

Which of the following things cannot be done with a debit card but can be done with a credit card?

• Rent a car

• Go into debt

• Purchase an airline ticket

• Purchase something online

You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:

• Liability

• Comprehensive

• Collision

• Uninsured motorist protection

The purpose of insurance is to:

• Transfer financial risk

• Provide an investment opportunity

• Develop a savings plan

• All are true

Employee benefits packages:

• Are non-wage compensations provided to employees in addition to their normal wages or salaries

• Should not be a consideration when looking for a job

• Never include retirement plans

• Are the same regardless of the company you work for

Which of the following statements is false?

• All high-paying careers require a four-year college degree.

• On-the-job training often combines a professional trainer, hands-on activities and formal classroom training.

• An associateʹs degree is a two-year degree that can offer specialized training and a flexible schedule that allows you to work while you earn your degree.

• Students who are looking to learn specific skills can look into free or low-cost certifications found online, at community colleges, or through government-funded programs.

What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ?

• Opportunity cost

• Law of diminishing return

• Delayed gratification

• Significant purchases

Which of the following statements best explains why income alone does not determine wealth?

• How much money a person makes does not dictate his or her spending and saving behavior.

• Investing is the only factor that contributes to wealth building.

• Income alone does determine a personʹs wealth.

• Only people who are natural savers can become wealthy.

This tax pays for benefits that workers and families receive for either Social Security or Medicare.

• Federal Insurance Contribution Act (FICA)

• Sales Tax

• State income tax

• Excise tax

What is the difference between gross pay and net pay?

• Net pay describes your pay after deductions; gross pay is before.

• Gross pay describes your pay after deductions; net pay is before.

• Gross and net pay are the same.

• None of the answers are correct

Which statement is true about liquidity?

• The more liquid an investment, the less return

• The more liquid an investment, the more return

• The less liquid the investment, the less return

• The less liquid the investment, the more return