Financial Literacy Test

If you do not pay your entire credit card bill each month, you will have to pay _____.

• Interest

• Taxes

• A fee

• A debt

When getting money from an ATM, this is considered a ______.

• Deposit

• Withdrawl

• Income

• Tax

Using a debit card means

• you will pay the amount later as part of your credit card bill.

• the money is taken out of your checking account.

• cash was used to pay the amount owed.

• money was put into your account.

If a transaction occurred in your account and your balance went from $45.67 to $39.50...

• a direct deposit occurred.

• a payment occurred.

• a deposit occurred.

• a tax occurred.

To determine your net worth, the formula is ___.

• Assets - Liability = Equity

• Assets + Liability = Equity

• Assets = Liability - Equity

• Assets x Liability = Equity

An asset is

• things you owe.

• things you own.

• your net worth.

• taxes you pay the government.

Liabilities are

• things you owe.

• things you own.

• your net worth.

• taxes you owe the government.

Equity is

• things you own.

• things you owe.

• your net worth.

• taxes you owe the government.

What is one way to increase your net worth?

• take out more loans.

• spend more than you earn.

• Sell off all your assets.

• Get more investment opportunities.

What is NOT an example of an liability?

• car loan

• credit card

• student loan

• house