Basic Financial Literacy Quiz
Take this 50 question quiz to find out if you can achieve the basic level of financial literacy. This quiz came from the National Council on Economic Education.
How do education and job experience generally affect the productivity of a worker? *
1 point
A sales tax is a tax on: *
1 point
Sarah just inherited $20,000.  She wants to use this money for her college education in two years.  Which of the following savings plans would be best for her to get the highest rate of return over the next two years, if interest rates were to fall after she invests? *
1 point
Inflation is the term used to describe: *
1 point
Which is a deduction made from the wages you receive from a job? *
1 point
The opportunity cost of a decision is the: *
1 point
The main difference between simple interest and compound interest is that compound interest is: *
1 point
Willie was lured to an electronics store that was advertising a great price for a DVD player the store knew it didn’t have in stock.  The clerk told him the store was out of that model, and showed him higher-priced models.  What illegal marketing strategy was used in this case? *
1 point
What is the opportunity cost of saving money? *
1 point
A budget is a record of: *
1 point
Your credit line is the: *
1 point
Juanita has a debit card, a credit card, a certificate of deposit (CD), and an automobile insurance policy.  Which one of these is a savings instrument? *
1 point
 Sally can shop at two grocery stores.  The closest one to her has less variety and higher prices, while the farther one has more variety and lower prices.  Sally shops at the closest one.  Which factor did Sally give the most weight to in her decision? *
1 point
What is the opportunity cost of dropping out of school before your high school graduation? *
1 point
For budgeting purposes, how would you classify the cost of repairing your car due to an accident? *
1 point
Comparison shopping is most important when purchasing items that are: *
1 point
Which is a primary reason for planning and thinking before buying something? *
1 point
Nasser used his credit card to buy a tie at The Shirt Shop for $20.  As a result of this transaction, the credit card company will: *
1 point
If Jill writes a check for $500, but has only $450 in her checking account, this would be an example of: *
1 point
Compared with most employees, entrepreneurs: *
1 point
A federal program to provide the elderly with some retirement income and to assist the minor children of a parent who has died is: *
1 point
Roxie ordered a hamburger after quickly looking at the menu.  Later, she found out the restaurant offered Reuben sandwiches, and she wished she had ordered one.  Which step of the decision-making process did Roxie do a poor job of following? *
1 point
About how many years would it take for $100 to become $200 if $100 is deposited in a savings account with an interest rate of 7.2 percent? *
1 point
Which is a way to increase productivity? *
1 point
This is Sally's checking account register. If Sally writes a check for $50 at Food Mart, what is her new balance? *
1 point
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Choices have to be made because: *
1 point
People with a poor credit history will usually pay a: *
1 point
Which is an example of the effect of an economic incentive? *
1 point
A $400 tax is placed on all sports cars and this increases the price of sports cars.  The economic way of thinking suggests that: *
1 point
A debit card and a direct deposit both involve: *
1 point
Goods produced for the purpose of making other goods and services are called: *
1 point
One way to develop human capital is to: *
1 point
What are two main ways that an investor can get a return from stocks? *
1 point
The PIN required for an ATM card and a debit card is a measure to: *
1 point
Suppose a local government decides to spend more of its funds on public school education and less on roads.  This situation illustrates which point about the economic ways of thinking? *
1 point
You buy stock in a large corporation.  The risk of losing all of the money you invested in the stock is called: *
1 point
The main reason that businesses update their machinery and equipment is to: *
1 point
You decide that you want to save 10 percent of each paycheck.  You tell your bank to place 10 percent of each paycheck into your savings account.  This strategy is called: *
1 point
Which is the first step on the decision-making process? *
1 point
Entrepreneurs are considered innovators because they: *
1 point
What does the bank pay you for holding your savings? *
1 point
What is the opportunity cost of saving money? *
1 point
The phrase “There’s no such thing as a free lunch,” refers to the fact that: *
1 point
Which is true about stocks and bonds? *
1 point
What will likely happen to collateral if a person fails to repay a loan? *
1 point
Which form of payment for a purchase may incur fees if the balance is not paid by the due date? *
1 point
Which of the following is the most diversified investment? *
1 point
Character, capacity, and collateral are considered to be the three key factors: *
1 point
You are employed, but your income is low because you have few job skills.  What would be the best action to take to increase your income? *
1 point
Hector bought a new television for $500 and used his credit card to make the purchase.  What is his opportunity cost from this purchase? *
1 point
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