Financial Literacy Quiz

What is financial literacy?

• The ability to read financial documents

• The possession of skills and knowledge to make informed financial decisions

• The ability to save money

• The knowledge of stock market trends

Which of the following is NOT a key takeaway of financial literacy?

• Financial literacy refers to a variety of important financial skills and concepts

• Financially literate people are less vulnerable to financial fraud

• Financial literacy is only important for business owners

• A strong foundation of financial literacy can help support various life goals

According to a 2019 survey by the Federal Reserve Bank of San Francisco, what percentage of transactions preferred cash payments?

• 22%

• 29%

• 42%

• 66%

Which of the following is NOT mentioned as a popular example of financial literacy skills?

• Household budgeting

• Learning how to manage and pay off debts

• Evaluating tradeoffs between different credit and investment products

• Understanding global economic policies

What percentage of Americans are estimated to lack financial literacy according to FINRA?

• 22%

• 29%

• 42%

• 66%

Which of the following is a potential consequence of being financially illiterate?

• Accumulating sustainable debt

• Making poor spending decisions

• Achieving long-term financial success

• Avoiding all types of debt

What has made it more imperative for individuals to understand how to use financial products responsibly?

• The increase in cash transactions

• The rise in popularity of electronic transfers and credit products

• The decline in financial fraud

• The stability of the housing market

What is one of the first steps in creating a budget?

• Estimating future expenses

• Tracking how much money you receive each month

• Investing in stocks

• Paying off all debts

What does the "Pay Yourself First" strategy involve?

• Paying off all your debts first

• Investing in the stock market

• Choosing a savings goal and setting aside money for it each month

• Spending on nonessentials first

How often can consumers request a free credit report from the three major credit bureaus?

• Once a month

• Once a year

• Twice a year

• Every six months