Trivia Test On Financial Literacy! Quiz

1. Which of the following instruments is NOT typically associated with spending?

Cash

Credit Card

Debit Card

Certificate of deposit

The correct answer was "Certificate of deposit" - 93.5% of high school students got this question correct.

Explanation

The correct answer was "Certificate of deposit" - 93.5% of high school students got this question correct.

2. If each of the following persons had the same amount of take-home pay, who would need the greatest amount of life insurance?

A young single woman with two young children.

A young single woman without children.

An elderly retired man, with a wife who is also retired.

A young married man without children.

The correct answer was "A young single woman with two young children" - 61.3% of high school students got this question correct. Source: Jump$tart quiz and answers

Explanation

The correct answer was "A young single woman with two young children" - 61.3% of high school students got this question correct. Source: Jump$tart quiz and answers

3.

Which of the following statements is true?

Your bad loan payment record with one bank will not be considered if you apply to another bank for a loan.

If you missed a payment more than 2 years ago, it cannot be considered in a loan decision.

Banks and other lenders share the credit history of their borrowers with each other and are likely to know of any loan payments that you have missed.

People have so many loans it is very unlikely that one bank will know your history with another bank.

The correct answer was "Banks and other lenders share the credit history of their borrowers with each other and are likely to know of any loan payments that you have missed" - 70.9% of high school students got this question correct. Source: Jump$tart quiz and answers

Explanation

The correct answer was "Banks and other lenders share the credit history of their borrowers with each other and are likely to know of any loan payments that you have missed" - 70.9% of high school students got this question correct. Source: Jump$tart quiz and answers

4. Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

When some clothes you like go on sale.

When the interest on the loan is greater than the interest you get on your savings.

When you need to buy a car to get a much better paying job.

When you really need a week vacation.

The correct answer was "When you need to buy a car to get a much better paying job" - 57.8% of high school students got this question correct. Source: Jump$tart quiz and answers

Explanation

The correct answer was "When you need to buy a car to get a much better paying job" - 57.8% of high school students got this question correct. Source: Jump$tart quiz and answers

5. Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

Young people don’t need health insurance because they are so healthy.

You continue to be covered by your parents’ insurance as long as you live at home, regardless of your age.

You are covered by your parents’ insurance until you marry, regardless of your age.

If your parents become unemployed, your insurance coverage may stop, regardless of your age.

The correct answer was " If your parents become unemployed, your insurance coverage may stop, regardless of your age" - 40.3% of high school students got this question correct. Source: Jump$tart quiz and answers

Explanation

The correct answer was " If your parents become unemployed, your insurance coverage may stop, regardless of your age" - 40.3% of high school students got this question correct. Source: Jump$tart quiz and answers

6. If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

Sales tax may be charged on the interest that you earn.

You cannot earn interest until you pass your 18th birthday.

Earnings from savings account interest may not be taxed.

Income tax may be charged on the interest if your income is high enough.

The correct answer was "Income tax may be charged on the interest if your income is high enough" - 22.7% of high school students got this question correct. Source: Jump$tart quiz and answers

Explanation

The correct answer was "Income tax may be charged on the interest if your income is high enough" - 22.7% of high school students got this question correct. Source: Jump$tart quiz and answers

7. Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years?

Young couples with no children who both work.

Young working couples with children.

Older, working couples saving for retirement.

Older people living on fixed retirement income.

The correct answer was "Older people living on fixed retirement income" - 44.1% of high school students got this question correct. Source: Jump$tart quiz and answers

Explanation

The correct answer was "Older people living on fixed retirement income" - 44.1% of high school students got this question correct. Source: Jump$tart quiz and answers

8. Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate?

If his parents took out an additional mortgage on their house for the loan.

If the loan was insured by the Federal Government.

If he went to a state college rather than a private college.

If his parents cosigned the loan.

The correct answer was "If he went to a state college rather than a private college" - 30.4% of high school students got this question correct. Source: Jump$tart quiz and answers

Explanation

The correct answer was "If he went to a state college rather than a private college" - 30.4% of high school students got this question correct. Source: Jump$tart quiz and answers

9. Kelly and Pete just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?

A U.S. Govt. savings bond

A savings account

A checking account

Stocks

The correct answer was "Stocks" - 14.2% of high school students got this question correct. Source: Jump$tart quiz and answers

Explanation

The correct answer was "Stocks" - 14.2% of high school students got this question correct. Source: Jump$tart quiz and answers

10. If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to Federal law?

Nothing

$50.00

$500.00

$1,000.00

The correct answer was "$50" - 15.1% of high school students got this question correct.

Explanation

The correct answer was "$50" - 15.1% of high school students got this question correct.