Financial Literacy Trivia Quiz: How Much You Know?
(20).jpg "Financial Literacy Trivia Quiz: How Much You Know? - Quiz")
How much do you understand about financial literacy? Financial literacy involves a certain kind of wisdom that comes along with practice. As far as this quiz goes, you must understand the more money you make, the amount of tax you pay goes up, the average social security a person makes per month, and the major problem with credit cards. This quiz will teach you more about finances. All the best.
Questions and Answers
- 1.
An average career will last approximately how many hours if you work for 43 years?
- A.
86,000 hours
- B.
1 million hours
- C.
8,600 hours
- D.
860 hours
Correct Answer
A. 86,000 hoursExplanation
Assuming a standard workweek of 40 hours, working for 43 years would result in a total of 86,000 hours. This calculation is derived from multiplying the number of years (43) by the number of weeks in a year (52) and then multiplying that by the number of hours in a week (40).Rate this question:
-
- 2.
Sometimes the U.S. government is known affectionately by the nickname?
- A.
Uncle Fred.
- B.
Aunt Sally.
- C.
Uncle Sam.
- D.
Cousin Kathy.
Correct Answer
C. Uncle Sam.Explanation
The correct answer is Uncle Sam. This nickname is often used to refer to the U.S. government or the United States as a whole. The origin of this nickname is believed to come from the initials "U.S." which are also the initials of Uncle Sam. The character of Uncle Sam is often depicted as a tall, bearded man wearing a top hat and red, white, and blue clothing, symbolizing the patriotic spirit of the United States.Rate this question:
-
- 3.
When paying taxes in the U.S., the more money you make, ____________________.
- A.
The fewer taxes you pay.
- B.
The more taxes you pay.
- C.
Doesn't make a difference because everyone pays the same amount in taxes.
- D.
The more you hate paying taxes.
Correct Answer
B. The more taxes you pay.Explanation
As per the given answer, when paying taxes in the U.S., the more money you make, the more taxes you pay. This is because the U.S. tax system is progressive, which means that individuals with higher incomes are subject to higher tax rates. Therefore, as your income increases, your tax liability also increases.Rate this question:
-
- 4.
A health insurance program that is funded by some of your taxes and run by the federal government is known as?
- A.
FICA.
- B.
State tax.
- C.
Unemployment tax.
- D.
Medicare.
Correct Answer
D. Medicare.Explanation
Medicare is a health insurance program funded by taxes and operated by the federal government. It provides coverage for individuals who are 65 years or older, certain younger individuals with disabilities, and people with end-stage renal disease. FICA refers to the Federal Insurance Contributions Act, which is a payroll tax that funds Social Security and Medicare. State tax and unemployment tax are unrelated to health insurance programs.Rate this question:
-
- 5.
The average Social Security payment a person receives today per month is
- A.
Over $5,000.
- B.
Less than $1,000.
- C.
More money than the person use to earn each month when they were working.
- D.
More than enough to cover a person's monthly bills.
Correct Answer
B. Less than $1,000.Explanation
The correct answer is less than $1,000. This is because the average Social Security payment a person receives today per month is generally lower than $1,000.Rate this question:
-
- 6.
One common denominator of most financially successful people is that they?
- A.
Quit school before they were 18.
- B.
Always keep $500 in their pocket.
- C.
Started a business early in life.
- D.
Worked part-time when they were teenagers.
Correct Answer
D. Worked part-time when they were teenagers.Explanation
Financially successful people often develop a strong work ethic and valuable skills early on in life. By working part-time during their teenage years, they gain experience, learn responsibility, and develop a sense of financial independence. This early exposure to work helps them build a foundation for success in their future careers and financial endeavors.Rate this question:
-
- 7.
People who do not understand the difference between ______________ usually struggle with financial problems.
- A.
Taxes and insurance
- B.
Needs and wants
- C.
Buying and renting
- D.
Food and shelter
Correct Answer
B. Needs and wantsExplanation
People who do not understand the difference between needs and wants usually struggle with financial problems. This is because they may prioritize their wants over their needs, leading to overspending and financial instability. Needs are essential for survival, such as food, shelter, and clothing, while wants are non-essential desires. Failing to distinguish between the two can result in poor financial decision-making and difficulty managing expenses.Rate this question:
-
- 8.
One major problem with using credit cards is that people
- A.
Lose them a lot.
- B.
Buy things they can't afford.
- C.
Have to pay to use them.
- D.
Forget to use them.
Correct Answer
B. Buy things they can't afford.Explanation
Using credit cards can lead to people buying things they can't afford. Credit cards provide individuals with the ability to make purchases without immediately paying for them. This can lead to impulsive buying and overspending, as people may not have a clear understanding of their financial limitations. As a result, they may accumulate debt and struggle to make the necessary payments, leading to financial difficulties in the long run.Rate this question:
-
- 9.
If you use a credit card, you should
- A.
Pay the full balance of the credit card every month
- B.
Pay the minimum payment each month
- C.
Never pay the bill
- D.
Be able to buy anything you want
Correct Answer
A. Pay the full balance of the credit card every monthExplanation
Using a credit card can be convenient, but it is important to manage it responsibly. Paying the full balance of the credit card every month is the best practice because it helps avoid accumulating interest charges. By paying the full balance, you ensure that you are not carrying any debt and maintain a good credit score. This also helps in avoiding unnecessary fees and penalties. It is crucial to be financially responsible and only spend what you can afford to pay off at the end of each billing cycle.Rate this question:
-
- 10.
A ___________ is a plan for how you will spend your money.
- A.
Paycheck
- B.
Cash journal
- C.
Credit card
- D.
Budget
Correct Answer
D. BudgetExplanation
A budget is a plan for how you will spend your money. It helps you allocate your income towards different expenses and savings goals. By creating a budget, you can prioritize your spending, track your expenses, and ensure that you are living within your means. It allows you to make informed decisions about where your money should go and helps you achieve financial stability and reach your financial goals.Rate this question:
-
- 11.
Health insurance is
- A.
Only for those who get sick.
- B.
An unnecessary expense because you may not need it.
- C.
A must buy item for your budget.
- D.
More important for women than for men.
Correct Answer
C. A must buy item for your budget.Explanation
Health insurance is a must-buy item for your budget because it provides financial protection in case of unexpected medical expenses. Illnesses and accidents can occur at any time, and the cost of medical treatments can be extremely high. Having health insurance ensures that you have access to necessary healthcare services without worrying about the financial burden. It also helps in preventive care and early detection of potential health issues. Therefore, it is essential to include health insurance in your budget to safeguard your physical and financial well-being.Rate this question:
-
- 12.
If you can't afford renter's insurance, you
- A.
Need to take out a loan for it.
- B.
Need to charge it on your credit card.
- C.
Can't afford the place you want to rent.
- D.
Need to look around for another type of insurance.
Correct Answer
C. Can't afford the place you want to rent.Explanation
If you can't afford renter's insurance, it implies that you don't have enough money to pay for the insurance premium. This suggests that you may also not have enough funds to afford the place you want to rent, as renter's insurance is typically a requirement or strongly recommended for renting certain properties. Landlords often require tenants to have renter's insurance to protect their property in case of any damages or liabilities, and if you can't afford this insurance, it may indicate that you don't have the financial means to afford the rental property either.Rate this question:
-
- 13.
Which item below would certainly depreciate if you owned it?
- A.
A house
- B.
A car
- C.
Gold
- D.
All of the above
Correct Answer
B. A carExplanation
A car would certainly depreciate if you owned it. This is because cars are considered as depreciating assets, meaning their value decreases over time. Factors such as wear and tear, mileage, age, and market demand contribute to the depreciation of a car. Unlike houses and gold, which can appreciate in value, cars typically lose value as soon as they are driven off the lot and continue to depreciate over time.Rate this question:
-
- 14.
Credit card debt and _________________ are the two most common causes of financial disasters for young people in the U.S.
- A.
Automobile costs
- B.
Food costs
- C.
Stingy parents
- D.
Computer viruses
Correct Answer
A. Automobile costsExplanation
Credit card debt and automobile costs are the two most common causes of financial disasters for young people in the U.S. This is because many young people often rely on credit cards to make purchases beyond their means, leading to high levels of debt. Additionally, automobile costs such as car payments, insurance, and maintenance can quickly add up and become a financial burden for young individuals who may not have stable income or budgeting skills. Therefore, these two factors contribute significantly to financial difficulties faced by young people in the U.S.Rate this question:
-
- 15.
Chain mails involving money are?
- A.
Usually legal and ethical.
- B.
Legal if you are 21.
- C.
Completely illegal.
- D.
Partly legal and ethical.
Correct Answer
C. Completely illegal.Explanation
Chain mails involving money are completely illegal. Chain mails are a form of scam where individuals are asked to send money to the person at the top of the chain with the promise of receiving a large sum of money in return. However, this is a fraudulent scheme that preys on people's greed and is illegal in most jurisdictions. Participating in such activities can result in legal consequences and financial loss. It is important to be aware of these scams and avoid engaging in any illegal activities.Rate this question:
-
- 16.
Around how much money did Doodles (the waitress) save?
- A.
$200
- B.
$200,000
- C.
2 million
- D.
20 billion
Correct Answer
C. 2 millionExplanation
Doodles, the waitress, saved a significant amount of money, specifically 2 million dollars.Rate this question:
-
- 17.
What are the two main reasons to save money?
- A.
For rainy days and to buy all the things you want
- B.
For rainy days and major purchases
- C.
To pay off your credit cards and for major purchases
- D.
So you can invest it and donate it
Correct Answer
B. For rainy days and major purchasesExplanation
The two main reasons to save money are for rainy days and major purchases. Saving money for rainy days refers to having a financial cushion to cover unexpected expenses or emergencies. This helps to avoid going into debt or relying on credit cards during difficult times. Saving for major purchases means setting aside money over time to afford significant expenses such as a house, car, or education. By saving for these specific goals, individuals can avoid borrowing money or incurring high-interest debt.Rate this question:
-
- 18.
How can you make money while you sleep?
- A.
Put your money under your pillow for the tooth fairy
- B.
Dream about money
- C.
Invest your money
- D.
Donate your money
Correct Answer
C. Invest your moneyExplanation
Investing your money can potentially generate passive income, allowing you to make money while you sleep. By putting your money into various investment vehicles, such as stocks, bonds, real estate, or mutual funds, you can earn returns on your investment without actively working for it. These investments can generate dividends, interest, or capital gains, providing you with a steady income stream even when you're not actively involved. This allows your money to work for you and grow over time, increasing your wealth and financial independence.Rate this question:
-
- 19.
What caused Jessica's $100,000 mistake?
- A.
Using 17 different credit cards
- B.
Not buying renters insurance
- C.
Falling for an internet scam
- D.
Not buying health insurance
Correct Answer
D. Not buying health insuranceExplanation
Jessica's $100,000 mistake was caused by not buying health insurance. This implies that she faced a significant financial loss due to a health-related issue or medical expenses that could have been covered by insurance.Rate this question:
-
- 20.
You won't be able to move out if you have
- A.
Too many friends
- B.
Pets
- C.
Protective parents
- D.
Bad credit
Correct Answer
D. Bad creditExplanation
Having bad credit can prevent someone from being able to move out because it can make it difficult to secure a rental property or obtain a mortgage. Landlords and lenders often check an individual's credit history to assess their financial responsibility and ability to make payments. If someone has a history of late payments, defaults, or high levels of debt, it can make them appear risky to potential landlords or lenders, resulting in their application being denied or requiring a higher security deposit. Therefore, having bad credit can be a significant obstacle to moving out.Rate this question:
-
- 21.
Why should you buy renter's insurance?
- A.
In case of a fire
- B.
In case you get robbed
- C.
In case of a flood
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
Renter's insurance is important because it provides coverage in case of various unfortunate events such as fire, robbery, and flood. In the event of a fire, the insurance will help cover the cost of replacing damaged belongings. If you get robbed, the insurance will provide compensation for stolen items. Additionally, in the case of a flood, renter's insurance will help cover the cost of replacing or repairing damaged belongings. Therefore, it is advisable to buy renter's insurance to protect yourself financially in any of these situations.Rate this question:
-
- 22.
What are three main things you have to pay for every month when having a car?
- A.
Car payment, gas, and tires
- B.
Car payment, gas, and insurance
- C.
Gas, insurance, and oil changes
- D.
Insurance, car payment, and car washes
Correct Answer
B. Car payment, gas, and insuranceExplanation
When owning a car, there are three main expenses that need to be paid every month. The first expense is the car payment, which refers to the monthly installment for purchasing the car. The second expense is gas, which is required to fuel the car and keep it running. Finally, insurance is also necessary to protect the car and cover any potential damages or accidents. Therefore, the correct answer is car payment, gas, and insurance.Rate this question:
-
- 23.
What happened to 9 year old Shilo Puckett?
- A.
She was a victim of identity theft
- B.
She made $71,000 through a chain e-mail
- C.
She lost $50,000 worth of her stuff when her apartment burned down
- D.
She lost her toy
Correct Answer
A. She was a victim of identity theftExplanation
Shilo Puckett, a 9-year-old, became a victim of identity theft. This means that someone illegally obtained and used her personal information, such as her name, Social Security number, or financial details, without her consent. Identity theft can have serious consequences, including financial loss, damage to credit history, and potential legal issues. It is unfortunate that such a young child had to go through this experience.Rate this question:
-
- 24.
Developing a financial lifestyle that fits the amount of money you will earn in your career and is the secret to financial success is called
- A.
A money management program
- B.
A journey driven lifestyle
- C.
A lifestyle driven journey
- D.
None of the above
Correct Answer
B. A journey driven lifestyleExplanation
A journey driven lifestyle refers to the concept of aligning one's financial decisions and lifestyle choices with their long-term goals and aspirations. It involves making conscious choices about spending, saving, and investing in order to achieve financial success. This approach recognizes that financial success is not just about earning a high income, but also about managing and allocating resources effectively to support one's desired lifestyle. By adopting a journey driven lifestyle, individuals can ensure that their financial decisions are in line with their personal values and goals, ultimately leading to long-term financial stability and success.Rate this question:
-
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 22, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 17, 2010Quiz Created by
Jacielliott
Back to top